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The production function of a firm is given by q= KL.Input prices are as follow: rental rate on capital r = 3 and wage is
The production function of a firm is given by q= KL.Input prices are as follow: rental rate on capital r = 3 and wage is w = 2.In long run, both inputs are variables.
- Please find the combination of the inputs (K &L) that minimizes total cost of producing 200 units of output.What is the total cost of producing 200 units of output? Show your calculation step by step.
- If the wage rate goes up to 3, find the new combination of the inputs and write down the total cost function. Show your calculation step by step.
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