a) A firm operates according to the following production function: q(K,L)=100 Ks Las The price of capital is r=$15/unit and the price of labor is w=$60 per unit. The firm currently operates with KSA-100 units of capital and wants to produce qs 4000 units of output. How much labor does the firm need to hire and what is the total cost of producing the 4000 units?

ENGR.ECONOMIC ANALYSIS
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a) A firm operates according to the following production function: q(K,L)=100 KS LOS.
The price of capital is r=$15/unit and the price of labor is w=$60 per unit. The firm
currently operates with KSR-100 units of capital and wants to produce qs 4000 units of
output. How much labor does the firm need to hire and what is the total cost of
producing the 4000 units?
Transcribed Image Text:a) A firm operates according to the following production function: q(K,L)=100 KS LOS. The price of capital is r=$15/unit and the price of labor is w=$60 per unit. The firm currently operates with KSR-100 units of capital and wants to produce qs 4000 units of output. How much labor does the firm need to hire and what is the total cost of producing the 4000 units?
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