The firm's production function is given as: Q (L,K) = 2L + 30K. The costs of Labor (L) and Capital (K) are given as: w = $20 and r= $2 and firm's desired level of output (Q) is 1,000 units. Based on this information, what is the I input (L,K) combination for this firm? %3D a. K=40, L=600 b. K=40, L=0 c. K=0, L=40 d. K=0, L=600
The firm's production function is given as: Q (L,K) = 2L + 30K. The costs of Labor (L) and Capital (K) are given as: w = $20 and r= $2 and firm's desired level of output (Q) is 1,000 units. Based on this information, what is the I input (L,K) combination for this firm? %3D a. K=40, L=600 b. K=40, L=0 c. K=0, L=40 d. K=0, L=600
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.7P
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Question
6.
![The firm's production function is given as: Q
(L,K) = 2L + 3OK.
The costs of Labor (L) and Capital (K) are
given as: w = $20 and r= $2 and firm's
desired level of output (Q) is 1,000 units.
Based on this information, what is the I
input (L,K) combination for this firm?
a. K=40, L=600
b. K=40, L=0
c. K=0, L=40
d. K=0, L=600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92503610-3552-4bcb-9ba0-7265476b1020%2Fff1496ad-dc59-443a-af6a-a07ae892b55e%2F004svi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The firm's production function is given as: Q
(L,K) = 2L + 3OK.
The costs of Labor (L) and Capital (K) are
given as: w = $20 and r= $2 and firm's
desired level of output (Q) is 1,000 units.
Based on this information, what is the I
input (L,K) combination for this firm?
a. K=40, L=600
b. K=40, L=0
c. K=0, L=40
d. K=0, L=600
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