3. The production function for diapers is:q = 6L12 K2Where q is the number of diapers produced, L is labor hours, and K is machinehours.Assume that the firm can use part of an hour of capital and part of an hour of labor.а)If the diaper firm wants to produce q = 60, what combination of L and K would ituse if the rental rate of capital= Pg = $4/hour and the wage rate of labor = P, = $2/hour?2b)If the diaper firm continues to produce q = 60, what combination of L and Kwould the firm use if Pg stayed the same, but P, increased to $4/hour?If P, = $4 and P = $4, how much K and L would the diaper firm use to produce36 diapers? 30 diapers?d)Using your answers to (b) and (c) graph the long-run average cost curve for thefirm.

The production function for diapers is: q = 6L1½ K/2 Where q is the number of diapers produced, L is labor hours, and K is machine hours. Assume that the firm can use part of an hour of capital and part of an hour of labor. a) If the diaper firm wants to produce q= 60, what combination of L and K would it %3D use if the rental rate of capital = Px = $4/hour and the wage rate of labor = PL = $2/hour?

The production function for diapers is: q = 6L1½ K/2 Where q is the number of diapers produced, L is labor hours, and K is machine hours. Assume that the firm can use part of an hour of capital and part of an hour of labor. a) If the diaper firm wants to produce q= 60, what combination of L and K would it %3D use if the rental rate of capital = Px = $4/hour and the wage rate of labor = PL = $2/hour?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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