(a) Suppose a Firm produce output using the production function Q-5KL. Wage rate for hiring labor 200 an hour and cost of using capital is 100 per hour. (1) Find out the optimal quantities of labor (L) & capital (K’) to produce 1000 unit of output?. (i) Also show the result graphically and interpret.
(a) Suppose a Firm produce output using the production function Q-5KL. Wage rate for hiring labor 200 an hour and cost of using capital is 100 per hour. (1) Find out the optimal quantities of labor (L) & capital (K’) to produce 1000 unit of output?. (i) Also show the result graphically and interpret.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![(a) Suppose a Firm produce output using the production function Q=5KL. Wage rate for
hiring labor 200 an hour and cost of using capital is 100 per hour. (1) Find out the
optimal quantities of labor (L') & capital (K’) to produce 1000 unit of output?. (ii) Also
show the result graphically and interpret.
(b) Explain the concept of Isoquant and Isocost line in firm theory. Mathematically derive
the slope of isocost line and Isoquant and interpret.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd6ef2ff-540c-4815-a488-18e94c3676d1%2F12275955-e799-4d94-bba9-12d2cce1f9b5%2F7zyu44_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a) Suppose a Firm produce output using the production function Q=5KL. Wage rate for
hiring labor 200 an hour and cost of using capital is 100 per hour. (1) Find out the
optimal quantities of labor (L') & capital (K’) to produce 1000 unit of output?. (ii) Also
show the result graphically and interpret.
(b) Explain the concept of Isoquant and Isocost line in firm theory. Mathematically derive
the slope of isocost line and Isoquant and interpret.
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