Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a) Joe will employ L*= _________ workers. b) Joe will use K*=  _________ machines. c) The total cost will be _________.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee:

a) Joe will employ L*= _________ workers.

b) Joe will use K*=  _________ machines.

c) The total cost will be _________.

d) Doubling the amount of output will require _________ the cost.

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