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
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.3IP
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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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