Say you own a Mexican place that produces, among other things, Mexican burritos. Your production of burritos is given by the equation Q = 6KL2, where Q is the amount of burritos, K is the amount of capital and L is the amount of labor. How many workers you would need to use in order to minimize the cost of producing 100 burritos when the capital is, K, is 20?

Question

Quizplus · Accepted Answer

To produce 100 burritos with K=20, solve 100 = 6(20)L^2 for L. This gives L^2 = 5/3, so L = √(5/3), which is approximately 1.29. Since L must be a whole number, the minimum is 2 workers.

Say You Own a Mexican Place That Produces, Among Other