4. Ikea Inc., a home remodeling business. The number of square fee they can remodel in a day is described by the Cobb-Douglas production function Q= F (1,K)= 4K""L." where I. is their number of workers and K is units of capital. The wage rate is $5 a day, and a unit of capital costs $20 a day. What is their minimum cost input combination for remodeling (Q=200) 200 square feet a day? What is the total minimum cost level?

4. Ikea Inc., a home remodeling business. The number of square fee they can remodel in a day is described by the Cobb-Douglas production function Q= F (1,K)= 4K""L." where I. is their number of workers and K is units of capital. The wage rate is $5 a day, and a unit of capital costs $20 a day. What is their minimum cost input combination for remodeling (Q=200) 200 square feet a day? What is the total minimum cost level?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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