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A firm's production function is |
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Suppose the capital input is fixed in the short-run at the level
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Need help with question 2. |
Homework Answers
The optimal choice of input combination in long run,
MPk/r=MPlL/w
(2*L^1/3)/(3*27*k^1/3=(k^2/3)/(3*4*L^2/3)
8L=27K
So K=8,
8L=27*8
L=27
Q=8^2/3*27^1/3=4*3=12
Option B is right
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