Consider the following production function: q = 100L0.8K0.4 Currently the wage rate (w) is $12.00 and the price of capital (r) is $4.00. If the firm is using 100 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.)

Consider the following production function: q = 100L0.8K0.4 Currently the wage rate (w) is $12.00 and the price of capital (r) is $4.00. If the firm is using 100 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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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