Suppose that a firmrsquos production function is q mink l, Ask an Expert

Economics

Suppose that a firm’s production function is Q = min{K, L}. Currently, the wage is w = 8 and the cost of capital is r = 8.

A) What is the minimum cost method of producing Q = 40 units of output?

B) Suppose that wages fall to w = 4. Keeping total cost the same, what level of output can be produced and mix of K and L is used?

C) Repeat parts (a) and (b) assuming the production function is Q = K + L..

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91339313

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