50. It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L2/3K!/3 machines can be produced. Suppose the company has $150,000 to purchase labor and capital. a. What is the maximum number of machines it can produce?

50. It costs a company $15 to purchase an hour of labor and $20 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.075L2/3K!/3 machines can be produced. Suppose the company has $150,000 to purchase labor and capital. a. What is the maximum number of machines it can produce?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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