Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital? A) 100 Units B) 0 Units C) 200 Units D) 125 Units

Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital? A) 100 Units B) 0 Units C) 200 Units D) 125 Units

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 5MC

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Question

Given the production function Q=20L+8K and cost budget = 1000JD; w (Price per unit of labor)=8; r(price per unit of capital)= 4. Find the optimal quantity of capital?

A) 100 Units

B) 0 Units

C) 200 Units

D) 125 Units

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