Question: Consider the following production function: q=100L 0.8 k 0.4 Currently the wage rate (w) is $1.00 and the price of capital (r) is $2.00. If

Consider the following production function:

                                                 q=100L0.8k0.4

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.)

 

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