Suppose the technology of a producer is described by the production function 2 ƒ (l, k) = 20l³ k³. If the price of labour is w=$1 and the price of capital is r=$4, what is the 3 2 cost of producing 20 units of output? (Note: for this technology, MPL = 8lk and MPK = 8l ³ ³ k³ ³ ³ .)
Suppose the technology of a producer is described by the production function 2 ƒ (l, k) = 20l³ k³. If the price of labour is w=$1 and the price of capital is r=$4, what is the 3 2 cost of producing 20 units of output? (Note: for this technology, MPL = 8lk and MPK = 8l ³ ³ k³ ³ ³ .)
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 2SQ
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![Suppose the technology of a producer is described by the production function
2
ƒ (l, k) = 20l³ k³. If the price of labour is w=$1 and the price of capital is r=$4, what is the
3
2
cost of producing 20 units of output? (Note: for this technology, MPL = 8lk and
MPK = 8l ³ ³ k³ ³ ³ .)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cbb990b-4859-41cc-960c-7667753d8121%2Fdd1d4b86-40ef-4125-8595-784babb0ea19%2Fsq2i5i4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose the technology of a producer is described by the production function
2
ƒ (l, k) = 20l³ k³. If the price of labour is w=$1 and the price of capital is r=$4, what is the
3
2
cost of producing 20 units of output? (Note: for this technology, MPL = 8lk and
MPK = 8l ³ ³ k³ ³ ³ .)
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