Suppose the production of airframes is characterized by a Cobb-Douglas production function: Q = LK. The marginal

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Suppose the production of airframes is characterized by a Cobb-Douglas production function: Q = LK. The marginal products for this production function are MPL = K and MPK = L. Suppose the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-minimizing combination of labor and capital if the manufacturer wants to produce 121,000 airframes.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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