Question
You manage a firm that has the production function q = 10L1/2K1/3. You can hire labor (L) at a wage of $9 per unit of
You manage a firm that has the production function q = 10L1/2K1/3. You can hire labor (L) at a wage of $9 per unit of labor and rent capital (K) at a rate of $12 per unit of capital. Your boss gives you a budget of $1200.
Write out budget constraint in terms of inputs:
What is your optimal amount of L and K? =
L =
K =
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Principles Of Economics
Authors: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz
6th Edition
0078021855, 9780078021855
