1 1 2. Suppose a producer's production function is F(K, L) = 3KZL The cost of K is 20 (r = 20) and the cost of L is 80 (w = 80) The firm wants to produce 30 units of output. a. What is the cost-minimizing way for the firm to produce 30 units of output? How many units of capital and how many units of labor should be used?
1 1 2. Suppose a producer's production function is F(K, L) = 3KZL The cost of K is 20 (r = 20) and the cost of L is 80 (w = 80) The firm wants to produce 30 units of output. a. What is the cost-minimizing way for the firm to produce 30 units of output? How many units of capital and how many units of labor should be used?
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 16E
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2. Suppose a producer's production function is F(K, L) = 3KZL²
The cost of K is 20 (r = 20) and the cost of L is 80 (w = 80)
The firm wants to produce 30 units of output.
a.
What is the cost-minimizing way for the firm to produce 30 units of output? How many units
of capital and how many units of labor should be used?
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