**Production Optimization of Plastic Bins**A firm produces plastic bins using labor (measured in man-hours) and capital (measured in machine-hours), according to the production function $ Q = f(L, K) = LK $, where $ Q $ is the number of plastic bins produced. Suppose that the cost of labor is $20 per worker-hour and the cost of capital is $10 per machine-hour.What is the cost minimizing input combination if the firm wants to produce 28,800 plastic bins? *Hint: The marginal products are $ MP_L = K $ and $ MP_K = L $.*

Cost minimizing input combination is achieved when marginal rate of technical substitution is equal…

Answered: A firm produces plastic bins using…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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