Suppose that a firm had a production function given by


Suppose that a firm had a production function given by: q=L0.25K0.75. The wage rate (w) is $5 and the rental rate (r) is $10

Calculate the amount of labor the firm would hire when it produces 400 units of output in a cost-minimizing way.

(Round to the nearest 2 decimal places if necessary.)

Solution Preview :

Prepared by a verified Expert
Business Management: Suppose that a firm had a production function given by
Reference No:- TGS02935174

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)