Pat's company, Tasty Tidbits, competes with Evie's and Johanna's company in the Guelph catering market. His production function is Q=20* √L*√K with K MRT SLK = L' Pat plays a fair wage of $225 and a unit of capital costs $100. Currently, Pat has a fixed stock of 25.0 units of capital. How much could Pat save when producing 300.0 meals (Q=300.0) efficiently if the captial stock was not fixed? If Pat could save money, then enter a positive amount. No units, no rounding.

Pat's company, Tasty Tidbits, competes with Evie's and Johanna's company in the Guelph catering market. His production function is Q=20* √L*√K with K MRT SLK = L' Pat plays a fair wage of $225 and a unit of capital costs $100. Currently, Pat has a fixed stock of 25.0 units of capital. How much could Pat save when producing 300.0 meals (Q=300.0) efficiently if the captial stock was not fixed? If Pat could save money, then enter a positive amount. No units, no rounding.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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