A company's production process is modeled by the production function Y(L, K)= LK. The wage rate is w=9 and the cost of capital is r=5. What is the amount of labour, L, that minimizes the cost C(L, K) = wL+rK such that the total level of production be Y(K, L) = 139? a. 12.65 b. None of the other choices is correct. c.. 103.60 d. 8.79

A company's production process is modeled by the production function Y(L, K)= LK. The wage rate is w=9 and the cost of capital is r=5. What is the amount of labour, L, that minimizes the cost C(L, K) = wL+rK such that the total level of production be Y(K, L) = 139? a. 12.65 b. None of the other choices is correct. c.. 103.60 d. 8.79

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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