Question

A manager hires labour and rent capital equipment in a very competitive market. Currently the wage rate is 2 Ghana cedis per hour and the capital is rented at 5Ghana cedis per hour, the unit price of the product is 0.25 and total cost is 1000. Suppose the firm production function is as Q=14k to the power 0.5 L to the power 0.5+10. What is the amount of labour and capital the firm should employ in order to maximize output and what is the maximum profit

Answer 1

Answer:

Currently the wage rate i $6 per hour and capital is rented at $12... ... If the marginal product of labor is 50 units of ouptup per hour and the marginal ...

Explanation:

the wage rate is GH¢2 per hour and capital is rented at GH¢5 per hour, the unit price of the product is GH¢0.25 and total cost is 1000.

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Answer 2

Answer:

the required answer is 5 units