Consider a firm that has the production function F(K,L)= 3L^(1/2) K^(1/2). Suppose that the...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Consider a firm that has the production function F(K,L)= 3L^(1/2) K^(1/2). Suppose that the price of labor is $3 and the price of capital is $12.
a) What is the firms marginal rate of technical substitution?
b) If the firm is producing at the cost minimizing level, what is the optimal capital-labor ratio?
c) If the firm wants to produce units of their good at the cost minimizing level, how many units of capital and labor should it use? Show your work.
d) How much does it cost the firm to produce units of their good at the cost minimizing level? More generally, what is the firms cost function (in terms of )
Consider a firm that has the production function F(K,L)=3L21K21. Suppose that the price of labor is $3 and the price of capital is $12. a) What is the firm's marginal rate of technical substitution? If the firm is producing at the cost minimizing level, what is the optimal capital-labor ratio? If the firm wants to produce q units of their good at the cost minimizing level, how many units of capital and labor should it use? Show your work. How much does it cost the firm to produce q units of their good at the cost minimizing level? More generally, what is the firm's cost function (in terms of
Consider a firm that has the production function F(K,L)= 3L^(1/2) K^(1/2). Suppose that the price of labor is $3 and the price of capital is $12.
a) What is the firms marginal rate of technical substitution?
b) If the firm is producing at the cost minimizing level, what is the optimal capital-labor ratio?
c) If the firm wants to produce units of their good at the cost minimizing level, how many units of capital and labor should it use? Show your work.
d) How much does it cost the firm to produce units of their good at the cost minimizing level? More generally, what is the firms cost function (in terms of )
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.