Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15 and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm make? 20 O 26.5 30 O 36.5
Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15 and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm make? 20 O 26.5 30 O 36.5
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 19PAE
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![Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15
and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm
make?
20
O 26.5
O 30
O 36.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbec9edff-ab88-4cb0-8227-8395cbaebd70%2F4fffb90b-572c-40c1-83cf-f7585d889ddf%2Fsxfjo8u_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following production function Q=1.25K0.3L0.5 where the price of Q is $10, the wage paid to labor L is $15
and rental rate for capital K is $30. Assume you can only use 6 units of capital L. How much revenue will the firm
make?
20
O 26.5
O 30
O 36.5
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