A firm has a monthly production function where L is hours of labor per month and K

Question:

A firm has a monthly production function

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?

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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Mar 18, 2016 04:47 AM

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A firm has a monthly production function where L is hours of labor per month and K

Question:

Q=F(L, K)=L+y1+K,

Step by Step Answer:

a L 100 K 0 b If we plot L along the horizontal axis and K along the vertical axis then the firms o...View the full answer

Microeconomics

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