Find the optimum level of capital that generates the lowest cost of producing 178 units of output if output is produced according to the Cobb-Douglas Q = 10*(K^0.4)*(L^(1-0.4)), and r = 9 and w = 7.

Find the optimum level of capital that generates the lowest cost of producing 178 units of output if output is produced according to the Cobb-Douglas Q = 10(K^0.4)(L^(1-0.4)), and r = 9 and w = 7.

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

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.2CE

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Question

Find the optimum level of capital that generates the lowest cost of producing
178 units of output if output is produced according to the Cobb-Douglas Q =
10*(K^0.4)*(L^(1-0.4)), and r = 9 and w = 7.

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