A firm with the production function Q(K,L) = 2LVKL is currently utilizing 6 units of labour...

Question

Question

A firm with the production function Q(K,L) = 2LVKL is currently utilizing 6 units of labour and 3 units of capital. If this i

business economics

Answer 1

Answer #1

Answer:

Solution:

Step 1) for optimal input mix, mente e where, MPL = marginal product of laborer = 20 MPK= Marginal Product of capital = 20 PL

Step7) Given that, - Total cost = 87 » LPL + K Pk=27 » 6P2+ 3 pk=27 [2P,+Pk=gs Step 8) put 2 PL=3Pk , 3 Pk +Pk=9 4Pk=9

Step g) 2 PL=3PK 1. Put Pk = 24 ☆ 2 P2= 3x3 4

Answer 2

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