11. A firm has a production function of Y = $100 Log(K), where K is the amount of capital used in production. The slope of the production function is given by $100/K. Suppose the interest rate is 100%. What is the optimal level of capital? a. $1 b. $20 C. $50 d. $100 e. $200
11. A firm has a production function of Y = $100 Log(K), where K is the amount of capital used in production. The slope of the production function is given by $100/K. Suppose the interest rate is 100%. What is the optimal level of capital? a. $1 b. $20 C. $50 d. $100 e. $200
Chapter1: Making Economics Decisions
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![11. A firm has a production function of Y = $100 Log(K), where K is the amount of capital
used in production. The slope of the production function is given by $100/K. Suppose the
interest rate is 100%. What is the optimal level of capital?
a. $1
b. $20
C. $50
d. $100
e. $200
...](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bae1eec-35a7-4ea6-b315-a96389a51fed%2Fec545644-5aa1-4d7c-adff-2a8ba33e6ac6%2Fk6iutot_processed.jpeg&w=3840&q=75)
Transcribed Image Text:11. A firm has a production function of Y = $100 Log(K), where K is the amount of capital
used in production. The slope of the production function is given by $100/K. Suppose the
interest rate is 100%. What is the optimal level of capital?
a. $1
b. $20
C. $50
d. $100
e. $200
...
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