A firm's production function is given by Q = 8L K + 7L Unit capital and...

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A firm's production function is given by Q = 8L K + 7L Unit capital and labour costs are $1 and $7 respectively and total input costs are $500. (a) Find the values of L and K which maximise output. (b) Verify that the ratio of marginal product to price is the same for both inputs at the optimum. (a) The value of K = and the value of L = !! (Round your answer to three decimal places as needed.) (b) The ratio of the marginal product of capital to the unit price of capital is MPK PK Work out the ratio of the marginal product of labour to the unit price of labour MP %3! PL (Give your answers to the nearest whole number as needed.) Hence the ratio of marginal product to price is the same for all inputs. Any slight discrepancy in the answers is due to rounding. A firm's production function is given by Q = 8L K + 7L Unit capital and labour costs are $1 and $7 respectively and total input costs are $500. (a) Find the values of L and K which maximise output. (b) Verify that the ratio of marginal product to price is the same for both inputs at the optimum. (a) The value of K = and the value of L = !! (Round your answer to three decimal places as needed.) (b) The ratio of the marginal product of capital to the unit price of capital is MPK PK Work out the ratio of the marginal product of labour to the unit price of labour MP %3! PL (Give your answers to the nearest whole number as needed.) Hence the ratio of marginal product to price is the same for all inputs. Any slight discrepancy in the answers is due to rounding.

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The production function is Q8L 2 K7L 3 a Find the values of L and K that will maximize output The qu... View the full answer