Production Function is Q = 25L^1/2(K^1/2)
Where: Q = Output Rate
K = units of capital
L = units of labor
a) Suppose that the price of capital (r) is $40.00 per unit and the price of labor (w) is $160.00 per unit.
If the firm wants to produce 5000 units, what is the optimal combination of inputs (L & K)?
b) What is the total cost of producing the 5000 units if the firm's fixed costs = $10,000?© BrainMass Inc. brainmass.com October 10, 2019, 1:51 am ad1c9bdddf
The production function is integrated in this solution.