For the production function Q = k0.8L0.7 and the budget 104 = 5K+ 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.8 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

For the production function Q = k0.8L0.7 and the budget 104 = 5K+ 3L find the NEW LEVEL in the optimal employment of capital (K) after wages change by a factor of 0.8 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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