Consider a price-taking firm whose production function is given by q=3 L1/5 K1/9 where L and K denote respectively the amount of labour and capital the firm uses to produce q units of output. Suppose the price of labour is w = 16, the price of capital is 24 and the price of the firm's output is p=225. Derive the firm's conditional demand for capital. Then enter below the amount of capital the firm would use to produc 100 units of output at minimum cost.

Consider a price-taking firm whose production function is given by q=3 L1/5 K1/9 where L and K denote respectively the amount of labour and capital the firm uses to produce q units of output. Suppose the price of labour is w = 16, the price of capital is 24 and the price of the firm's output is p=225. Derive the firm's conditional demand for capital. Then enter below the amount of capital the firm would use to produc 100 units of output at minimum cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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