The Whoville Marble Collective (WMC) makes fancy marbles for picky Whos. WMC's output is given by Q = 20K0.75 0.25, where Q is WMC's annual output (measured in 1000s of marbles), K is their annual capital input and L is their annual labor input. WMC's capital input costs PK = $8000 per unit and their labor input costs p₁ = $25000 per unit. Assuming that WMC's annual production budget is B = $800,000, their maximum annual output is ... 412,891 marbles. 726,085 marbles. 578,634 marbles. O...=857,232 marbles.

The Whoville Marble Collective (WMC) makes fancy marbles for picky Whos. WMC's output is given by Q = 20K0.75 0.25, where Q is WMC's annual output (measured in 1000s of marbles), K is their annual capital input and L is their annual labor input. WMC's capital input costs PK = $8000 per unit and their labor input costs p₁ = $25000 per unit. Assuming that WMC's annual production budget is B = $800,000, their maximum annual output is ... 412,891 marbles. 726,085 marbles. 578,634 marbles. O...=857,232 marbles.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.9P

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