QUESTION 1 For the production function Q = KO.6L0.6 and the budget 149 = 6K + 2L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the short run after output has change by a factor of 1.9. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
QUESTION 1 For the production function Q = KO.6L0.6 and the budget 149 = 6K + 2L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the short run after output has change by a factor of 1.9. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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