a) A firm operates according to the following production function: q(K,L)=100 Ks Las The price of capital is r=$15/unit and the price of labor is w=$60 per unit. The firm currently operates with KSA-100 units of capital and wants to produce qs 4000 units of output. How much labor does the firm need to hire and what is the total cost of producing the 4000 units?
a) A firm operates according to the following production function: q(K,L)=100 Ks Las The price of capital is r=$15/unit and the price of labor is w=$60 per unit. The firm currently operates with KSA-100 units of capital and wants to produce qs 4000 units of output. How much labor does the firm need to hire and what is the total cost of producing the 4000 units?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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