In the previous problem, what is the minimum-cost method of producing 100 machines? (Ignore the $10,000 budget
Question:
In the previous problem, what is the minimum-cost method of producing 100 machines? (Ignore the $10,000 budget constraint.)
Data from Previous Problem:
It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.05L2/3 K1/3 machines can be produced. Suppose the company has $100,000 to purchase labor and capital.
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Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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