Consider the following production function: q=100L 0.8 k 0.4 Currently the wage rate (w) is $1.00 and

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Consider the following production function:

$q = 100 L^{0.8} k^{0.4}$

Currently the wage rate (w) is $1.00 and the price of capital (r) is $2.00.

If the firm is using 100 units of capital in production, how much labor should be employed to minimize costs?

(Enter a numeric response using a real number rounded to two decimal places.)

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Posted Date: Jan 21, 2021 07:35 PM

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Consider the following production function: q=100L 0.8 k 0.4 Currently the wage rate (w) is $1.00 and

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Wage rate w 100 Price of capital r 200 Units of capital in p... View the full answer

Microeconomics

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