3. Optimal inputs: A firm has a production function, y = ln(l, k) in a market with pricesPy = 20, pe = 4, Pk = 5. Find the firm's profit maximizing choice for y, l, and k. Howmuch profit do they earn?

Given Production function: y=ln(lk) ... (1) price of good y is 20 Price of labor = 4 Price…

Answered: = Optimal inputs: A firm has a…

= Optimal inputs: A firm has a production function, y Py = 20, pe = 4, Pk much profit do they earn? In(l, k) in a market with prices 5. Find the firm's profit maximizing choice for y, l, and k. How

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 15QP

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3. Optimal inputs: A firm has a production function, y = ln(l, k) in a market with prices
Py = 20, pe = 4, Pk = 5. Find the firm's profit maximizing choice for y, l, and k. How
much profit do they earn?

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