Question: Suppose a rm has a production function given by Q = L1/2K1/2. Therefore, l 2 andMPK 2 L1 2K2 1 2 MPL = K 2L


Suppose a rm has a production function given by Q = L1/2K1/2. Therefore, l 2 andMPK 2 L1 2K2 1 2 MPL = K 2L 1 MI The rm can purchase labor, L, at a price w = 36 and capital, K, at a price of r = 4. If the rm wants to produce 45 units of output (Q=45), how much labor and capital should the rm hire in order to minimize the cost of production? The rm should hire units of labor. The rm should hire units of capital
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