The Thneedville Thneed Group (TTG) produces high-quality thneeds for those that eed thneeds. The TTG output function is T = 30K04 L0.7, where K and L are their nnual capital and labor inputs, respectively, and 7 is TTG's annual output, measured in 00s of thneeds. The prices per unit of capital and labor are pк = $2000 and PL = $4000, respectively. a) The minimum cost of producing 15,000 thneeds, is achieved when TTG uses K*~
The Thneedville Thneed Group (TTG) produces high-quality thneeds for those that eed thneeds. The TTG output function is T = 30K04 L0.7, where K and L are their nnual capital and labor inputs, respectively, and 7 is TTG's annual output, measured in 00s of thneeds. The prices per unit of capital and labor are pк = $2000 and PL = $4000, respectively. a) The minimum cost of producing 15,000 thneeds, is achieved when TTG uses K*~
Chapter1: Making Economics Decisions
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![The Thneedville Thneed Group (TTG) produces high-quality thneeds for those that
need thneeds. The TTG output function is T = 30K04 L0.7, where K and L are their
annual capital and labor inputs, respectively, and 7 is TTG's annual output, measured in
100s of thneeds.
The prices per unit of capital and labor are pк
=
$2000 and PL
=
$4000, respectively.
(a) The minimum cost of producing 15,000 thneeds, is achieved when TTG uses K*~
[Select]
units of labor.
units of capital and L*[Select]
(b) Their minimum cost is C* [Select]
(c) TTG's marginal cost (when cost is minimized) is approximately
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3412af01-3229-4dca-828b-6e0d000e0e24%2Fcf727911-f574-40e4-92ea-f8194fdad45f%2Fi0d2scp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Thneedville Thneed Group (TTG) produces high-quality thneeds for those that
need thneeds. The TTG output function is T = 30K04 L0.7, where K and L are their
annual capital and labor inputs, respectively, and 7 is TTG's annual output, measured in
100s of thneeds.
The prices per unit of capital and labor are pк
=
$2000 and PL
=
$4000, respectively.
(a) The minimum cost of producing 15,000 thneeds, is achieved when TTG uses K*~
[Select]
units of labor.
units of capital and L*[Select]
(b) Their minimum cost is C* [Select]
(c) TTG's marginal cost (when cost is minimized) is approximately
[Select]
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