For the production function Q = KO.4L0.6 and the budget 124 = 3K + 5L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the long run after output has change by a factor of 1.5. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 1.1).

For the production function Q = KO.4L0.6 and the budget 124 = 3K + 5L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the long run after output has change by a factor of 1.5. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 1.1).

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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