10. A firm produces output according to the production function Q = F(K, L) = 4K +8L. a. How much output is produced when K= 2 and L= (LOI, LO2) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 v c. How does your answer to part b change if the wage but the rental rate on capital remains at $20 per hour? 3? Units of output? rate decreases to $20 per hour

10. A firm produces output according to the production function Q = F(K, L) = 4K +8L. a. How much output is produced when K= 2 and L= (LOI, LO2) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 v c. How does your answer to part b change if the wage but the rental rate on capital remains at $20 per hour? 3? Units of output? rate decreases to $20 per hour

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 9TY

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