A firm faces the following production function: y(k, 1) = √k + √l. The output price is equal to 6, and the input price of labor is equal to 2. If the output price increases to 10, by how much does the optimal level of labor input increase? necessary, round your answer to two decimal places!

A firm faces the following production function: y(k, 1) = √k + √l. The output price is equal to 6, and the input price of labor is equal to 2. If the output price increases to 10, by how much does the optimal level of labor input increase? necessary, round your answer to two decimal places!

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 4SQ

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A firm faces the following production function: y(k, 1) = √k + √l.
The output price is equal to 6, and the input price of labor is equal to 2.
If the output price increases to 10, by how much does the optimal level of labor input increase?
If necessary, round your answer to two decimal places!

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