Chapter9: Production Functions
Section: Chapter Questions
Problem 9.5P
Related questions
Question
QUESTION 2
The total production of a good y is determined by the production function y = 3L2/3K1/3, where L is labour input and K capital input.
The reward (factor prices) for labour and capital are, l = 27 en r = 2, respectively.
The producer needs to produce 9000 units of good y.
How much units of labour will he hire if he wants to miminize his total costs?
The total production of a good y is determined by the production function y = 3L2/3K1/3, where L is labour input and K capital input.
The reward (factor prices) for labour and capital are, l = 27 en r = 2, respectively.
The producer needs to produce 9000 units of good y.
How much units of labour will he hire if he wants to miminize his total costs?
1587,4
839,95
3000
515,23
839,95
3000
515,23
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning