A firm has a production function of Q = KL + L, where MP_L = K + 1 and MP_K = L. The
wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital.

Question

A firm has a production function of Q = KL + L, where MP_L = K + 1 and MP_K = L. The wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital.

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The Answer of A firm has a production function of Q = KL + L, where MP_L = K + 1 and MP_K = L. The wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital.

A Firm Has a Production Function of Q = KL