Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio (K/L) if the cost a unit of capital (r) is 5 times the cost of a unit of labor (w).

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Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital-
to-labor ratio (K/L) if the cost a unit of capital (r) is 5 times the cost of a unit of labor
(w).
Your Answer:
Transcribed Image Text:Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio (K/L) if the cost a unit of capital (r) is 5 times the cost of a unit of labor (w). Your Answer:
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