Mark's coffee shop has the production function, q=4K0.5L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a. Joe will employ L*= __________ workers. b. Joe will use K*= _________ machines. c. The total cost will be _________.

Mark's coffee shop has the production function, q=4K0.5L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a. Joe will employ L= ______ workers. b. Joe will use K= _ machines. c. The total cost will be _____.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 11QP

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Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a) Joe will employ L*= _________ workers. b) Joe will use K*= _________ machines. c) The total cost will be _________. d) Doubling the amount of output will require _________ the cost.
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