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where Q=barrels of beer, K=units of capital, and L=units of labor. a) Suppose that capital can be purchased for $3 per unit, and labor costs
where Q=barrels of beer, K=units of capital, and L=units of labor. a) Suppose that capital can be purchased for $3 per unit, and labor costs $6 per unit. What is the optimal combination of inputs for the rm to employ? b) Suppose that the cost of inputs changes to $? for a unit of capital, and $9 for a unit of labor. What is the new optimal combination of inputs? c) Explain the results of a) and 1)). Problem 6. The daily production function of a certain company is given by the following expression: Q=5L-0 .5L2 a) If the marginal cost of labor is equal to $18 and the rm can sell each unit of the good it produces for $6, what is the optimal amount of labor (L) that this firm should hire? b) What is the rm's prot
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