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    The production function

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    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?

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    https://brainmass.com/economics/output-and-costs/cobb-douglass-production-function-351691

    Solution Summary

    The production function is integrated in this solution.

    $2.19