1. Assume a daily production function for a firm is Q=min(3L, 4K) a. If L 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q - 1200? (show your work) Labor Capital -

Economics (MindTap Course List)
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Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section17.2: A Production Function And Economic Growth
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1. Assume a daily production function for a firm is Q= min(3L, 4K)
a, If L = 100 and K = 100 what quantity is produced?
Explain why.
b. What would be the cost-minimizing labor and capital combination for this firm to produce Q =
1200? (show your work) Labor =
Capital =
At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of
capital is: r= $100, what is the total cost of production? (show your calculations)
C.
Transcribed Image Text:1. Assume a daily production function for a firm is Q= min(3L, 4K) a, If L = 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q = 1200? (show your work) Labor = Capital = At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of capital is: r= $100, what is the total cost of production? (show your calculations) C.
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