For the production function Q = K0.3 0.7 and the budget 123 = 6K + 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 1.1 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
For the production function Q = K0.3 0.7 and the budget 123 = 6K + 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 1.1 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
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 1.5CE
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![QUESTION 1
For the production function Q=K0.3L0.7 and the budget 123 = 6K + 3L find the NEW LEVEL the optimal employment of capital (K) after wages change by a factor of 1.1
while maintaining the same level of output.
Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2706cce8-4b35-4207-a6b9-92b7adbd5eca%2F13fede31-9644-4a42-a823-e283142a3325%2F5qkjsik_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
For the production function Q=K0.3L0.7 and the budget 123 = 6K + 3L find the NEW LEVEL the optimal employment of capital (K) after wages change by a factor of 1.1
while maintaining the same level of output.
Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).
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