Consider the following production function: q=100L0.80.4 Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00. If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.)
Consider the following production function: q=100L0.80.4 Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00. If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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![Consider the following production function:
Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00.
9=100L0.80.4
If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs?
Labor input units. (Enter a numeric response using a real number rounded to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8496c22a-9b09-460f-b9ca-ff362d6ea746%2F608c69d8-255b-453a-bb18-7aa6104c43d6%2F5q1o98_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following production function:
Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00.
9=100L0.80.4
If the firm is using 20 units of capital in production, how much labor should be employed to minimize costs?
Labor input units. (Enter a numeric response using a real number rounded to two decimal places.)
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