Suppose that the production function for Hannah and Sam's home remodeling business is Q = F(L,K) Q = 10L0.1K0.4. Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $1,000 per week. a. What is the least-cost input combination for remodeling 400 square feet each week? Instructions: Round your answers to 2 decimal places. units of labor and units of capital. b. What is the total cost? Instructions: Round your answer to 2 decimal places. $ .
Suppose that the production function for Hannah and Sam's home remodeling business is Q = F(L,K) Q = 10L0.1K0.4. Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $1,000 per week. a. What is the least-cost input combination for remodeling 400 square feet each week? Instructions: Round your answers to 2 decimal places. units of labor and units of capital. b. What is the total cost? Instructions: Round your answer to 2 decimal places. $ .
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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- Suppose that the production function for Hannah and Sam's home remodeling business is
Q = F(L,K)
Q = 10L0.1K0.4.
Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $1,000 per week.
a. What is the least-cost input combination for remodeling 400 square feet each week?
Instructions: Round your answers to 2 decimal places.
units of labor and units of capital.
b. What is the total cost?
Instructions: Round your answer to 2 decimal places.
$ .
revised jrl 08-11-2011
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