Question: Suppose a firm is currently using the production function q(L, K)=LK^2, where each workers' wage is $13 and each piece of capital costs $39 to
Suppose a firm is currently using the production function q(L, K)=LK^2, where each workers' wage is $13 and each piece of capital costs $39 to rent. The firm would like to produce 96 units of output at the lowest cost possible. You've been provided with the following equations for MPL and MPK:
MPL=K^2 and MPK=2LK
a)To produce 96 units of output at the lowest cost, the firm should use---------units of L and--------units of K
b)Their total cost of producing 96 units of output is $---------------
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