A firm has production function q = K/2L1/2 with fixed capital of K = 16. The firm hires labour and capital under competitive conditions at w = 1 and r 1. The firm sells output under competitive conditions at p = 4. Isoprofit analysis suggests that profits will be equal to 48 128 240 None of these

A firm has production function q = K/2L1/2 with fixed capital of K = 16. The firm hires labour and capital under competitive conditions at w = 1 and r 1. The firm sells output under competitive conditions at p = 4. Isoprofit analysis suggests that profits will be equal to 48 128 240 None of these

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm has production function q = K/2L1/2 with fixed capital of K = 16. The firm hires labour and
capital under competitive conditions at w = 1 and r= 1. The firm sells output under competitive
conditions at p = 4. Isoprofit analysis suggests that profits will be equal to
48
128
240
ONone of these

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