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 $120 per day and the price of labor, w, is $30 per day, what is the minimum cost of producing 20,000 units of output? The minimum cost of producing 20,000 units of output is $. (Round all intermediate results to 3 decimal places and enter your response rounded to two decimal places.)
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 $120 per day and the price of labor, w, is $30 per day, what is the minimum cost of producing 20,000 units of output? The minimum cost of producing 20,000 units of output is $. (Round all intermediate results to 3 decimal places and enter your response rounded to two decimal places.)
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text: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 $120 per day
and the price of labor, w, is $30 per day, what is the minimum cost of producing 20,000 units of output?
The minimum cost of producing 20,000 units of output is $. (Round all intermediate results to 3 decimal places and enter your response rounded to two decimal
places.)
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