A plant's production function is Q = 2KL. For this production function, MPx = 2L and MPL = 2K. The price of labor, w, is $4 and of capital, r, is $6 per unit. a) In the short run, the plant's capital is fixed at K = 5. Find the amount of labor it must employ to produce Q = 300 units of output. %3D
A plant's production function is Q = 2KL. For this production function, MPx = 2L and MPL = 2K. The price of labor, w, is $4 and of capital, r, is $6 per unit. a) In the short run, the plant's capital is fixed at K = 5. Find the amount of labor it must employ to produce Q = 300 units of output. %3D
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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