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A furniture manufacturer is considering moving its

A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.
a. What is the K/L ratio in Canada? If Q = 100, what is L & K in Canada? What is total cost?
b. What is the K/L ratio in India? If Q = 100, what is L & K in India? What is total cost?
c. What would the total cost be in India if the firm used the same factor quantities as

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Econometrics: A furniture manufacturer is considering moving its

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