A firm can produce according to the following production function: Q = F(K,L) = 20K04L0.6. Capital is fixed at 1 unit and it is rented at $500 per unit. The firm can sell its output at a price of $80 per unit and can hire labor at $100 per worker pe day. Given this information, optimal production, Q* = Instruction: Round your responses to no decimal place. Do not round values if used to complete other calculations.
A firm can produce according to the following production function: Q = F(K,L) = 20K04L0.6. Capital is fixed at 1 unit and it is rented at $500 per unit. The firm can sell its output at a price of $80 per unit and can hire labor at $100 per worker pe day. Given this information, optimal production, Q* = Instruction: Round your responses to no decimal place. Do not round values if used to complete other calculations.
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 11E
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Transcribed Image Text:Question 3
A firm can produce according to the following production function: Q = F(K,L) =
20K0.410.6. Capital is fixed at 1 unit and it is rented at $500 per unit. The firm can
sell its output at a price of $80 per unit and can hire labor at $100 per worker per
day. Given this information, optimal production, Q* =
Instruction: Round your responses to no decimal place. Do not round values if
used to complete other calculations.
Question 4
A firm can produce according to the following production function: Q = F(K,L) =
20K04L0.6. Capital is fixed at 1 unit and it is rented at $500 per unit. The firm can
sell its output at a price of $80 per unit and can hire labor at $100 per worker per
day. Given this information, optimal profits for the firm are = $___.
Instruction: Round your responses to no decimal place. Do not round values if
used to complete other calculations.
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