A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, w of the following production functions would result in this hiring mix? a.q=20L 1/4K 1/4 b.q=4L 1/10K 1/4 c.q=2L¹K² d.q=32 (L +2K)
A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K) at a rental rate (r) of $25. If the grave digging company is minimizing costs, w of the following production functions would result in this hiring mix? a.q=20L 1/4K 1/4 b.q=4L 1/10K 1/4 c.q=2L¹K² d.q=32 (L +2K)
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.7P
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