„1/3 Consider the production function y = (0.5x +0.5a). Suppose the firm wants to minimize the cost of producing 8 umits of output per day. It pays a wage rate w1 of $40 per hour and capital cost w2 of $10 per hour. How many units of labor and capital should the firm use?
„1/3 Consider the production function y = (0.5x +0.5a). Suppose the firm wants to minimize the cost of producing 8 umits of output per day. It pays a wage rate w1 of $40 per hour and capital cost w2 of $10 per hour. How many units of labor and capital should the firm use?
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.3P
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Transcribed Image Text:1/3
7 Consider the production function y = (0.5/ +0.52
of producing 8 units of output per day. It pays a wage rate wi of $40 per hour and capital cost w2 of
$10 per hour. How many units of labor and capital should the firm use?
Suppose the firm wants to minimize the cost
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