A firm has a monthly production function where L is hours of labor per month and K
Question:
where L is hours of labor per month and K is square feet of manufacturing space. The marginal product of labor is
The marginal product of capital is
a. If the hourly wage is $50 and manufacturing space costs $25 per square foot per month, what is the firm's least-cost input combination for producing 100 units?
b. Graph its output expansion path.
c. What is its cost function?
Transcribed Image Text:
Q=F(L, K)=L+y1+K,
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