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28 Sep 2019
A firm has the following production function: Q = 7*K1/2*L1/2
a) Calculate the amount of output the firm should expect if it uses 25 units of capital and 50 units of labor.
b) Suppose the firm wants to produce the same amount of output from a), but only has 15 units of capital. How much labor will it need to hire?
c) Suppose that a unit of capital costs $50, and a unit of labor costs $20. What is the cost of producing that quantity in part a) and in part b)?
A firm has the following production function: Q = 7*K1/2*L1/2
a) Calculate the amount of output the firm should expect if it uses 25 units of capital and 50 units of labor.
b) Suppose the firm wants to produce the same amount of output from a), but only has 15 units of capital. How much labor will it need to hire?
c) Suppose that a unit of capital costs $50, and a unit of labor costs $20. What is the cost of producing that quantity in part a) and in part b)?
Kelleb MloyiLv2
28 Sep 2019
