Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK =
and MP_L =
.
a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio?
b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

Question

Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK =

Suppose the firm's production function is Q = K<sup>1/3</sup>L<sup>2/3</sup>, where the MPK = and MP<sub>L</sub> = . a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

and MP_L = Suppose the firm's production function is Q = K1/3L2/3, where the MPK = and MPL = . a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

.
a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio?
b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

Quizplus · Accepted Answer

The Answer of Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK = and MP_L = . a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

Suppose the Firm's Production Function Is Q = K1/3L2/3, Where

Suppose the Firm's Production Function Is Q = K^1/3L^2/3, Where