Suppose a firm uses both labour l and capital k as inputs, Ask an Expert

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Suppose a firm uses both labour (L) and capital (K) as inputs and has the production function q = 2KL. The marginal product of labour is 2K. The marginal production of capital is 2L. If capital rents for $200 and labour can be hired for $100 per day and the firm is minimizing costs:

i) What is the total cost of producing q units of output? What is the average cost of producing q units of output?

What is the marginal cost of producing q units of output?

ii) What combination of capital and labour should it use to produce q = 64?

What would be the cost of production?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9743653

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