The production function of a firm is: Q=10L^0.6 K^0.4 where the price of labor is QR 10 (w = 10) and the rent of capital is QR 20 (r = 20) and the estimated market demand is 1000 toys (Q = 1000). Find the amount of labor (L) and capital (K) that the firm should employ and rent and find the total cost.

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To find the amount of labor L and capital K that the firm should employ and rent we need to maximize ... View the full answer