Q. 5 A firm has the production function Q = 20K02L08, where Q measures output, K represents machine hours, and L measures labour hours. If the price of capital is $15 per hour and the price of labor $10 per hour. In order to produce 40,000 units of output, a) how many labour and how many capital would the firm recruit? b) what is the minimum cost of producing 40,000 units of output?

Q. 5 A firm has the production function Q = 20K02L08, where Q measures output, K represents machine hours, and L measures labour hours. If the price of capital is $15 per hour and the price of labor $10 per hour. In order to produce 40,000 units of output, a) how many labour and how many capital would the firm recruit? b) what is the minimum cost of producing 40,000 units of output?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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