Consider the following production function: q=100L0.8K0.4 Currently the wage rate (w) is $4.00 and the price of capital (r) is $2.00. If the firm is using 200 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 $4.00 and the price of capital (r) is $2.00. If the firm is using 200 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.)

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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