Pk $4.00 PL = $2.00 Assume:P $2.00 10 1 15 5 1 28 2 24 6 12 3 20 5 10 4 12 48 7 1 8 2 12 4 4 6 10.5 0.5 0.250.5 7 2 0.5 8 1 0.25 0.5 9 0.5 0.125 0.25 The least cost combination of capital and lab...

Question

Question

business economics

Answer 1

Answer #1

At least cost combination ,

MPK / PK = MPL/ PL

& Total output should be 87 units

so if K = 3 & L = 1 , then

MPK / PK = MPL / PL = 5

& Total output is = (28+24+20) + 15

= 72+15 = 87

so optimal input combination :

K = 3, L = 1

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Answer 2

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