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3. The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K is capital and L is labour. If a firm that produces calculators wishes to produce 650 units of output and its capital stock is fixed in the short run at 20 units, how many units of labour should it hire? a) Five units of labour should be hired. b) Ten units of labour should be hired. c) Twenty units of labour should be hired.

3. The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K is capital and L is labour. If a firm that produces calculators wishes to produce 650 units of output and its capital stock is fixed in the short run at 20 units, how many units of labour should it hire? a) Five units of labour should be hired. b) Ten units of labour should be hired. c) Twenty units of labour should be hired.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4QR
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3. The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K is capital and L is labour. If a firm that produces calculators wishes to produce 650 units of output and its capital stock is fixed in the short run at 20 units, how many units of labour should it hire? a) Ten units of labour should be hired. Five units of labour should be hired. b) c) Twenty units of labour should be hired. d) Thirty units of labour should be hired.
Transcribed Image Text:3. The equation of the production function for calculators is q = 5KL + 30L, where q is total output, K is capital and L is labour. If a firm that produces calculators wishes to produce 650 units of output and its capital stock is fixed in the short run at 20 units, how many units of labour should it hire? a) Ten units of labour should be hired. Five units of labour should be hired. b) c) Twenty units of labour should be hired. d) Thirty units of labour should be hired.
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