A firm with the production function Q (K, L) = 2LKL is currently utilizing 8 units of

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A firm with the production function

Q (K, L) = 2L√KL

is currently utilizing 8 units of labor and 2 units of capital. If this is the optimal input mix, and if total costs are equal to 16, what are the prices of capital and labor?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:22 AM

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A firm with the production function Q (K, L) = 2LKL is currently utilizing 8 units of

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Optimality requires MP L MP K P L P K MP L K ...View the full answer

Microeconomics and Behavior

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