Question: Given below is the production function for a firm Q = 50 L0.7 K0.4 Here Q is output and L and K are the labor

Given below is the production function for a firm Q = 50 L0.7 K0.4 Here Q is output and L and K are the labor and capital inputs respectively and that the price K = r= Rs 40 and the price of L=w= Rs 20 and that output =P = Rs 2 per unit; a. Determine the output elasticity of L and K b. What is the minimum cost of producing 100 units of Q? c. Suppose that K is fixed at 100 units in the short run, determine the optimum use of labor input

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