Question: Question 2 2 pts Suppose that a firm uses two inputs ( K & L ) to produce its final output ( Q ) .

Question 2
2 pts
Suppose that a firm uses two inputs (K & L) to produce its final output (Q). Suppose also that the production functions for this firm is:
Q=F(K,L)=4(LK)0.5
Suppose also that the price of Labour is 4 and the price of Capital is 4. The price of your final good is 47. Finally, assume that we are in the short-run, and so Capital is fixed at K=10.
What is the short-run profit-maximizing choice of Q?
Note: Please round your answer to two decimal places.
Question 2 2 pts Suppose that a firm uses two

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!