firm produces basketballs with two variable inputs - labour (L) and plastic (K) - and has the following production function: f (L , K) = 6L1/3K1/6 If the price of output is 4, the price of labour is $2 and the price of plastic is $3, calculate the a) profit-maximizing level of each input b) the total production
firm produces basketballs with two variable inputs - labour (L) and plastic (K) - and has the following production function: f (L , K) = 6L1/3K1/6 If the price of output is 4, the price of labour is $2 and the price of plastic is $3, calculate the a) profit-maximizing level of each input b) the total production
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 2SQ
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A firm produces basketballs with two variable inputs - labour (L) and plastic (K) - and has the following production function:
f (L , K) = 6L1/3K1/6
If the
a) profit-maximizing level of each input
b) the total production
and
c) the profit.
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