For the production function Q=K0.1L0.1 and the budget 124 = 5K + 2L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.5 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=K0.1L0.1 and the budget 124 = 5K + 2L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.5 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 = K0.1L0.1 and the budget 124 = 5K + 2L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.5
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%2Fdab61230-8c2d-4d83-a010-ecf7204ee1d5%2F289l8pq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
For the production function Q = K0.1L0.1 and the budget 124 = 5K + 2L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.5
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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