A firm produces output according to the production function:Q = F(K, L) = 4K + 8L.a. How much output is produced when K = 2 and L = 3? unit(s)b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor: c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor:
A firm produces output according to the production function:Q = F(K, L) = 4K + 8L.a. How much output is produced when K = 2 and L = 3? unit(s)b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor: c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor:
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.14P
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Question
A firm produces output according to the production function:
Q = F(K, L) = 4K + 8L.
a. How much output is produced when K = 2 and L = 3?
unit(s)
b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital:
Labor:
c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital:
Labor:
Q = F(K, L) = 4K + 8L.
a. How much output is produced when K = 2 and L = 3?
unit(s)
b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital:
Labor:
c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?
Capital:
Labor:
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