The firm Greench produces T-shirts. The production function is given by the following: T-shirts = min(83 L, 17 K) The price of labor is $36, the price of capital is $43, the price of T-shirts is $100, and Greench's costs are $2516. What is the optimal amount of capital?
The firm Greench produces T-shirts. The production function is given by the following: T-shirts = min(83 L, 17 K) The price of labor is $36, the price of capital is $43, the price of T-shirts is $100, and Greench's costs are $2516. What is the optimal amount of capital?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:The firm Greench produces T-shirts. The production function is given by the following: T-shirts = min(83 L, 17 K) The price of labor is $36, the price of capital is $43, the price of T-shirts is $100, and Greench's costs are $2516. What is the optimal
amount of capital?
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