. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is Q(H, K) = H + 4K (2) -Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K. -Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.
. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is Q(H, K) = H + 4K (2) -Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K. -Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is
Q(H, K) = H + 4K (2)
-Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K.
-Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.
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