Consider the following production function: Currently the wage rate (w) is $5.00 and the price of capital (r) is $5.00. If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.) q=100L0.8K0.4
Consider the following production function: Currently the wage rate (w) is $5.00 and the price of capital (r) is $5.00. If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.) q=100L0.8K0.4
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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