Mark's coffee shop has the production function, q=4K0.5L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a. Joe will employ L*= __________ workers. b. Joe will use K*= _________ machines. c. The total cost will be _________.

Mark's coffee shop has the production function, q=4K0.5L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a. Joe will employ L= ______ workers. b. Joe will use K= _ machines. c. The total cost will be _____.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 5PA

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