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A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, w of the following production functions would result in this hiring mix? a.q=20L 1/4K 1/4 b.q=4L 1/10K 1/4 c.q=2L¹K² d.q=32 (L +2K)

A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, w of the following production functions would result in this hiring mix? a.q=20L 1/4K 1/4 b.q=4L 1/10K 1/4 c.q=2L¹K² d.q=32 (L +2K)

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, which of the following production functions would result in this hiring mix? 1/4: q=20L ¹/4K 1/4 b.q=4L1/10K 1/4 c.q=2L4K² d.q=32(L + 2K) a.
Transcribed Image Text:A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, which of the following production functions would result in this hiring mix? 1/4: q=20L ¹/4K 1/4 b.q=4L1/10K 1/4 c.q=2L4K² d.q=32(L + 2K) a.
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