For the production function Q = K0.6L0.8 and the budget 125 = 3K + 5L find the NEW LEVEL in the optimal employment of labor (L) after wages change by a factor of 1.4 while maintaining the same level of output.

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Q: For the production function Q=K0.8 0.7 and the budget 104 = 5K+ 3L find the NEW LEVEL in the optimal…

A: Production function : Q = K0.8 L0.7Budget : 104 = 5K + 3L Therefore ,Price of capital = 5Price of…

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