Suppose prices of labor and capital are $4 and $5 respectively. And 30 units ofproduct A can be produced by employing just labor and capital in the four differentways of technique.Production Techniques:IIIIIIIVLabor324Сapital132Refer to the above table. Which technique is economically most efficient inproducing A?O a) I.b) II.O c) III.O d) IV.

Cost is the expenditure that is occurred in producing goods and services in an economy. It is used…

Answered: Suppose prices of labor and capital are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The production function for a product is given by q=100KL. Its marginal product functions are MPL=100K and MPK=100L. If the price of capital, r, is $200 per day and the price of labor, w, is $400 per day, what is the minimum cost of producing 1,000 units of output? The minimum cost of producing 1,000 units of output is ______? (Round all intermediate results to 3 decimal places and enter your response rounded to two decimal places.)
Question 19 widget-manufacturing The production function for a firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the marginal product of labor at L = 9? O 18 O 3 none of the above
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