Suppose that a firm had a production function given by: q=L0.25K0.75. The wage rate (w) is $10 and the rental rate (r) is $10. Calculate the amount of labor the firm would hire when it produces 200 units of output in a cost-minimizing way. (Round to the nearest 2 decimal places if necessary.)
Suppose that a firm had a production function given by: q=L0.25K0.75. The wage rate (w) is $10 and the rental rate (r) is $10. Calculate the amount of labor the firm would hire when it produces 200 units of output in a cost-minimizing way. (Round to the nearest 2 decimal places if necessary.)
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 7TY
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