1. The production function for ACME WIDGETS is given by Q = 30 K^0.65 L^0.25 ,...
1. The production function for ACME WIDGETS is given by
Q = 30 K^0.65 L^0.25 ,
where Q is the number of widgets ACME produces in a month, K is the number of units of capital input and L is the number of units of labor input ACME uses to produce their widgets. The price per unit of capital input is p K = $ 4 , 000 and the price per unit of labor input is p^L = $ 2 , 000.
ACME's minimum cost of producing 900 units/month is
a 148212
b 260787
c 278918
d 206696
2.
This continues the previous problem.
ACME's marginal cost is
Group of answer choices
Decreasing as output increases.
There is not enough information to tell how the firm's marginal cost is behaving.
Increasing as output increases.
Constant as output increases.
Homework Answers
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1. The production function for ACME WIDGETS is given by
Q = 30 K^0.65 L^0.25 ,...
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