Let w denote price of the labour services. if the firm is, Ask an Expert

Economics

A manufacturing firm's production function is Q = KL + K +L. Suppose that the price r of capital services is equal to 1, and let w denote price of the labour services. If the firm is required to produce 5 units of output, for what values of w would a cost-minimizing firm use.

a) only labour?
b) only capital?
c) both labour and capital?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M940555

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