The following question is based on the production function Q=80L0.7K0.3 where the cost of labour is $6 and the cost of capital is $4. The total cost of production is $120. What is the level of output, given the optimal level of labour and capital? Select one: a.1000 b.500 c.981 d.451
The following question is based on the production function Q=80L0.7K0.3 where the cost of labour is $6 and the cost of capital is $4. The total cost of production is $120. What is the level of output, given the optimal level of labour and capital? Select one: a.1000 b.500 c.981 d.451
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following question is based on the production function Q=80L0.7K0.3 where the cost of labour is $6 and the cost of capital is $4. The total cost of production is $120.
What is the level of output, given the optimal level of labour and capital?
Select one:
a.1000
b.500
c.981
d.451
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