10. A firm produces output according to the production function Q = F(K, L) = 4K +8L. a. How much output is produced when K= 2 and L= (LOI, LO2) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 v c. How does your answer to part b change if the wage but the rental rate on capital remains at $20 per hour? 3? Units of output? rate decreases to $20 per hour

10. A firm produces output according to the production function Q = F(K, L) = 4K +8L. a. How much output is produced when K= 2 and L= (LOI, LO2) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 v c. How does your answer to part b change if the wage but the rental rate on capital remains at $20 per hour? 3? Units of output? rate decreases to $20 per hour

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume a firm has the following short-run production function: q(L) = L+6L2-1/2L3 If this firm is going to maximize profits in the short-run by producing a strictly positive level of output (q>0), what is the lowest level of labor (L) they would employ? A.) Minimum L=?
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The answer should be typed
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Solve the attachment.
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