You produce shoes (Q) with labor (L) and capital (K).  The production process is as so: Q = 400L - 20L2 + 600K – 10K2 The cost of labor is $20 and the cost of capital is $30.  You have a budget of $660.  How many units of capital(K) should you rent/buy?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.2IP: Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100...
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 You produce shoes (Q) with labor (L) and capital (K).  The production process is as so:
Q = 400L - 20L+ 600K – 10K2
The cost of labor is $20 and the cost of capital is $30.  You have a budget of $660. 
How many units of capital(K) should you rent/buy?  

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