A competitive manufacturer of gadgets has the following, Ask an Expert

Economics

A competitive manufacturer of gadgets has the following production function:

Q = 20K - K² + 30L - 2L² .

The price of gadgets, p = 1; the wage rate, w = 10; the rental price of capital, r = 16.

(a) What is the profit-maximizing level of output?

(b) At this equilibrium, what is marginal cost?

(d) At this equilibrium, what is the marginal rate of technical substitution?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91950535

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