Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15 and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm make? 20 O 26.5 30 O 36.5

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Chapter1: Making Economics Decisions
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Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15
and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm
make?
20
O 26.5
O 30
O 36.5
Transcribed Image Text:Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15 and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm make? 20 O 26.5 O 30 O 36.5
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