Q=40KL, w=$50 and v=$50. We want to produce a Quantity of 1000. 1-What is the RTS? 2-How much K and L do we need? 3-What is the total cost of producing this quantity?

ENGR.ECONOMIC ANALYSIS
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Q=40KL, w=$50 and v=$50. We want to produce a Quantity of 1000.
1-What is the RTS?
2-How much K and L do we need?
3-What is the total cost of producing this quantity?
4-If wages rise dramatically to w=$200, how much K and L do we need now? And what is
the cost?
At the new prices
5-If technology improves until q=100KL what are the new K and L?
6-What is the new cost?
7-How did the new technology affect the previous increase in prices?

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