tion: Q=Lo¹K0.5 and L if Q=10.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
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1) Suppose the wage is $12 and the cost of capital is $3, and
we have the following production function: Q=Lº$Kºs
a) Find your cost minimizing level of K and L if Q=10.
0.5
b) What is your long run cost in a?
0.5
c) Draw a graph that shows the isoquant and isocost that
minimizes costs.
Transcribed Image Text:1) Suppose the wage is $12 and the cost of capital is $3, and we have the following production function: Q=Lº$Kºs a) Find your cost minimizing level of K and L if Q=10. 0.5 b) What is your long run cost in a? 0.5 c) Draw a graph that shows the isoquant and isocost that minimizes costs.
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