Suppose the production is characterized by the function Q(K,L) = 50K05L05. The price of labor is $5 and the price of capital is $20. Find the cost minimizing combination of capital and labor if the...


Suppose the production is characterized by the function Q(K,L) = 50K05L05.<br>The price of labor is $5 and the price of capital is $20.<br>Find the cost minimizing combination of capital and labor if the manufacturer has an order<br>for 1000 units of output.<br>Put differently,<br>Given: Q = 50KO.5L0.5<br>w = $5, r = $20<br>Goal: Produce Qo = 1000 units of output as cheaply as possible.<br>

Extracted text: Suppose the production is characterized by the function Q(K,L) = 50K05L05. The price of labor is $5 and the price of capital is $20. Find the cost minimizing combination of capital and labor if the manufacturer has an order for 1000 units of output. Put differently, Given: Q = 50KO.5L0.5 w = $5, r = $20 Goal: Produce Qo = 1000 units of output as cheaply as possible.

Jun 10, 2022
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