The following question is based on the production functionQ=80L07K0.3 where the cost of labour is $6 and the cost of capital is $4. Thetotal cost of production is $120.What is the optimal level of capital?Select one:a. 5b. 36C. 4d. 9

The production function shows the relationship between the factors of production and the quantity of…

The following question is based on the production function D=80L0.7K0.3 where the cost of labour is $6 and the cost of capital is $4. The otal cost of production is $120. What is the optimal level of capital? Select one: а, 5 b. 36 C. 4 d. 9

The following question is based on the production function D=80L0.7K0.3 where the cost of labour is $6 and the cost of capital is $4. The otal cost of production is $120. What is the optimal level of capital? Select one: а, 5 b. 36 C. 4 d. 9

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 6WNG

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