Managerial Economics & Organizational Architecture 5th Edition by James Brickley, Jerold Zimmerman, Clifford Smith

تمرين 2

Assume Kodak's production function for digital cameras is given by Q = 100(L 0.7 K 0.3 ), where L and K are the number of workers and machines employed in a month, respectively, and Q is the monthly output. Moreover, assume the monthly wage per worker is $3,000 and the monthly rental rate per machine is $2,000. NOTE: Given the production function, the marginal product functions are MPL = 70(L -0.3 K 0.3 ) and MPK = 30(L 0.7 K -0.7 ).