Suppose that the production function is Q = 20K²L² for a firm. If price per unit of labor is 5Turkish Liras (P, = 5TL), price per unit of capital is 10 Turkish Liras (P = 107L) and thewwwfinancial capasity of firm for production is 600 Turkish Liras (C = 6007TL), find the amountsof K and L that minimize çost of the production for the firm.

Q=20K0.5L0.25 PL = 5 PK = 10 C = 600

Suppose that the production function is Q= 20K²L* for a firm. If price per unit of labor is 5 Turkish Liras (P, = STL), price per unit of capital is 10 Turkish Liras (P =107Z) and the financial capasity of firm for production is 600 Turkish Liras (C = 6007L ), find the amounts %3D of K and L that minimize cost of the production for the firm.

Suppose that the production function is Q= 20K²L* for a firm. If price per unit of labor is 5 Turkish Liras (P, = STL), price per unit of capital is 10 Turkish Liras (P =107Z) and the financial capasity of firm for production is 600 Turkish Liras (C = 6007L ), find the amounts %3D of K and L that minimize cost of the production for the firm.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.7P

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