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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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