Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and the price of labour is €20 per unit. The firm wants to produce 100 units of output. The number of units of capital that the firm will hire is A. 50 B. 5 C. 25 D. 0

Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and the price of labour is €20 per unit. The firm wants to produce 100 units of output. The number of units of capital that the firm will hire is A. 50 B. 5 C. 25 D. 0

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 16P

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Question

Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and the price of labour is €20 per unit. The firm wants to produce 100 units of output. The number of units of capital that the firm will hire is

A.

50

B.

5

C.

25

D.

0

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