Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital? A) 100 Units B) 0 Units C) 200 Units D) 125 Units

Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital? A) 100 Units B) 0 Units C) 200 Units D) 125 Units

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital?

A) 100 Units

B) 0 Units

C) 200 Units

D) 125 Units

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