A firm produces output according to a production function: Q = F ( K,L ) = min {6 K ,2 L }. a. How much output is produced when K = 2 and L = 3? unit(s) b. If the wage rate is $30 per hour and the...

A firm produces output according to a production function:



Q =F(K,L) = min {6K,2L}.


a. How much output is produced whenK = 2 andL = 3?


 unit(s)




b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output?


Capital:
Labor:




c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour? (Choose one that is the best answer)

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  Capital decreases and labor increases.

  
  

  
  
  
  


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  It does not change.

  
  

  
  
  
  


• 
  
  
  

  
  

  Capital increases and labor decreases.

  
  

  
  
  
  


• 
  
  
  

  
  

  Capital and labor increase.

  
  

  
  
  
  

Extracted text: A firm produces output according to a production function: Q= RK,L) = min {6K,2L). a. How much output is produced when K=2 and L= 3? |unit(s) b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output? Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour? Capital decreases and labor increases. O It does not change. O Capital increases and labor decreases. O Capital and labor increase.