1. Assume a daily production function for a firm is Q=min(3L, 4K) a. If L 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q - 1200? (show your work) Labor Capital -
1. Assume a daily production function for a firm is Q=min(3L, 4K) a. If L 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q - 1200? (show your work) Labor Capital -
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. Assume a daily production function for a firm is Q= min(3L, 4K)
a, If L = 100 and K = 100 what quantity is produced?
Explain why.
b. What would be the cost-minimizing labor and capital combination for this firm to produce Q =
1200? (show your work) Labor =
Capital =
At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of
capital is: r= $100, what is the total cost of production? (show your calculations)
C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F463cb2e4-14c7-484e-bd66-dba650a14f4c%2Fc0f83ab8-67a5-45b8-ba30-2f7b1f6c3d04%2Fuk1xcoa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Assume a daily production function for a firm is Q= min(3L, 4K)
a, If L = 100 and K = 100 what quantity is produced?
Explain why.
b. What would be the cost-minimizing labor and capital combination for this firm to produce Q =
1200? (show your work) Labor =
Capital =
At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of
capital is: r= $100, what is the total cost of production? (show your calculations)
C.
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