6 A firm produces output according to the production function:Q=F(K.L) = 4K - 8La. How much output is produced when K= 2 and L= 3?b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32units of output?Capital:Labor:c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing inputmix for producing 32 units of output?CapitalLabor:

A firm will minimise its cost at a point where marginal rate of technical substitution is equal to…

A firm produces output according to the production function: Q=F(K.L) = 4K - 8L a. How much output is produced when K= 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for pre units of output? Capital: Labor: c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizi mix for producing 32 units of output?

A firm produces output according to the production function: Q=F(K.L) = 4K - 8L a. How much output is produced when K= 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for pre units of output? Capital: Labor: c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizi mix for producing 32 units of output?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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