Question
The production function of a firm is: Q=10L^0.6 K^0.4 where the price of labor is QR 10 (w = 10) and the rent of capital
The production function of a firm is: Q=10L^0.6 K^0.4 where the price of labor is QR 10 (w = 10) and the rent of capital is QR 20 (r = 20) and the estimated market demand is 1000 toys (Q = 1000). Find the amount of labor (L) and capital (K) that the firm should employ and rent and find the total cost.
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
