II. Suppose that a firm's production function is given by Q = KL (MPK = L and MPL = K), where Q is quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively. a. How many units of labor and capital should the firm use if it wants to minimize the cost of producing 600 units of output? b. Suppose that the firm makes a technological change, transforming its production function to Q = 1.23KL (MPK = 1.23L and MPL = 1.23K). What is the minimum cost of producing 600 units of output?
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How Many Units Of Labor And Capital Should The Firm Use If It Wants To Minimize The Cost Of Producing 600 Units Of
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2. Suppose that a firm's production function is given by Q = KL(MPK = L and MPL = K), where Q is the quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively.
(a) How many units of labor and capital should the firm use if it wants to minimize the cost of producing 600 units of output?
(b) Suppose that the firm experiences a technological change, transforming its production function to Q = 1.23KL (MPK = L and MPL = K). What is the minimum cost of producing 600 units of output?
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