A firm produces output according to a production function q


A firm produces output according to a production function: Q = F(K,L) = min {2K,4L}. a. How much output is produced when K = 2 and L = 3? 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 4 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 $20 per hour? Capital increases and labor decreases. Capital and labor increase. Capital decreases and labor increases. It does not change

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Microeconomics: A firm produces output according to a production function q
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