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The market price of a labour is $15 per hour, and the rental cost of capital is S60 per hour. A firm's production function is
The market price of a labour is $15 per hour, and the rental cost of capital is S60 per hour. A firm's production function is Q= 15L^0.5K^-0.5.
If the fim uses 120 labourers per hour, then it will pair the labour with _________ units of capital to maximize profit.
Select one
a. 48 300
b. 300
c. 18.75
d.768
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