ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A firm pays each worker (I.e. each unit of labour L) a wage w 4 and pays for each computer (i.e. each unit of
capital K) a cost of r= 3. The firm has a production function Y K+2L and needs to produce Y 12. Which of
the following is correct?
Select one answer:
O The firm employs 6 workers and buys no computers.
O The firm buys 6 computers and hires no workers.
O The firm employs 12 workers and buys no computers.
O.
m buys 12 computers and hires no workers.
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Transcribed Image Text:A firm pays each worker (I.e. each unit of labour L) a wage w 4 and pays for each computer (i.e. each unit of capital K) a cost of r= 3. The firm has a production function Y K+2L and needs to produce Y 12. Which of the following is correct? Select one answer: O The firm employs 6 workers and buys no computers. O The firm buys 6 computers and hires no workers. O The firm employs 12 workers and buys no computers. O. m buys 12 computers and hires no workers.
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