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A Firm with a Production Function Q = KL (Where

Question 47

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A firm with a production function Q = KL (where K is units of capital and L is units of labor) has an expansion path that is given by K = 2L. The wage rate (W) is $20 and the rental on capital is $10. Complete the following table, assuming that the firm is using the optimal mix of inputs for any given output level. A firm with a production function Q = KL (where K is units of capital and L is units of labor) has an expansion path that is given by K = 2L. The wage rate (W) is $20 and the rental on capital is $10. Complete the following table, assuming that the firm is using the optimal mix of inputs for any given output level.

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At L = 1, K = 2(1) = 2 and Q = (2)(1) = ...

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