Suppose a firm with a production function given by Q = 30K^0.5L^0.5 produces 1,500 units of output. The firm pays a wage of $40 per unit and pays a rental rate of capital of $640 per unit. How many units of labor and capital should the firm employ to minimize the cost of producing 1,500 units of output? (Note: ) A) L = 200; K = 12.5 B) L = 625; K = 4. C) L = 275; K = 8.75 D) L = 150; K = 10

Question

Quizplus · Accepted Answer

The Answer of Suppose a firm with a production function given by Q = 30K^0.5L^0.5 produces 1,500 units of output. The firm pays a wage of $40 per unit and pays a rental rate of capital of $640 per unit. How many units of labor and capital should the firm employ to minimize the cost of producing 1,500 units of output? (Note: ) A) L = 200; K = 12.5 B) L = 625; K = 4. C) L = 275; K = 8.75 D) L = 150; K = 10

Suppose a Firm with a Production Function Given by Q