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The production function is given by Q=10L+2K. The wage for labor is $20 dollar per unit and price for capital is $5 per unit. The optimal bundle (L, K) to minimize cost is: (0, Q/2) (Q/20, Q/4) (Q/15, Q/3) (Q/10, 0) Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 10LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for labor would be: L=(10w/rQ) 1/2 L=(wQ/10r) 1/2 L=(rQ/10w) 1/2 L=(10r/wQ) 1/2

The production function is given by Q=10L+2K. The wage for labor is $20 dollar per unit and price for capital is $5 per unit. The optimal bundle (L, K) to minimize cost is: (0, Q/2) (Q/20, Q/4) (Q/15, Q/3) (Q/10, 0) Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 10LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for labor would be: L=(10w/rQ) 1/2 L=(wQ/10r) 1/2 L=(rQ/10w) 1/2 L=(10r/wQ) 1/2

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The production function is given by Q=10L+2K. The wage for labor is $20 dollar per unit and price for capital is $5 per unit. The optimal bundle (L, K) to minimize cost is: (0, Q/2) (Q/20, Q/4) (Q/15, Q/3) (Q/10, 0)
Transcribed Image Text:The production function is given by Q=10L+2K. The wage for labor is $20 dollar per unit and price for capital is $5 per unit. The optimal bundle (L, K) to minimize cost is: (0, Q/2) (Q/20, Q/4) (Q/15, Q/3) (Q/10, 0)
Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 10LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for labor would be: L=(10w/rQ) 1/2 L=(wQ/10r) 1/2 L=(rQ/10w) 1/2 L=(10r/wQ) 1/2
Transcribed Image Text:Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 10LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for labor would be: L=(10w/rQ) 1/2 L=(wQ/10r) 1/2 L=(rQ/10w) 1/2 L=(10r/wQ) 1/2
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