For the production function Q = k0.8L0.7 and the budget 104 = 5K+ 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.8 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 = k0.8L0.7 and the budget 104 = 5K+ 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.8 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).
Chapter1: Making Economics Decisions
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![**Question 1**
For the production function \( Q = K^{0.8}L^{0.7} \) and the budget \( 104 = 5K + 3L \), find the NEW LEVEL in the optimal employment of capital (\( K \)) after wages change by a factor of 0.8 **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).
[Input Box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F617a7678-1746-4eb9-98b7-8cce2858aea9%2Fd7e2821c-e948-4740-8d31-70a64cc049a4%2F7fe4do9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Question 1**
For the production function \( Q = K^{0.8}L^{0.7} \) and the budget \( 104 = 5K + 3L \), find the NEW LEVEL in the optimal employment of capital (\( K \)) after wages change by a factor of 0.8 **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).
[Input Box]
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