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16 Feb 2019
Please, provide all the steps... I need to be able to do this on my own after you show me. Thank you!
A firm produces output according to the production function:
Q = F(K,L) = 4K + 8L.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital: ?
Labor: ?
c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital: ?
Labor: ?
Please, provide all the steps... I need to be able to do this on my own after you show me. Thank you!
A firm produces output according to the production function:
Q = F(K,L) = 4K + 8L.
a. How much output is produced when K = 2 and L = 3?
b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital: ?
Labor: ?
c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital: ?
Labor: ?
Deanna HettingerLv2
16 Feb 2019
