Question

Question 2
A manager hires labour and rents capital equipment in a very competitive market. Currently
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. Suppose the firm’s production function is as
follows:
� = 14�*.,�*., + 10
i. What is the amount of labour and capital the firm should employ in order to maximize
output? [Hint: Maximise the product function subject to the cost constraint]

Answer 1

Answer:

14+10

=24

I hope it's helpful to you

Answer 2

Answer:

14 +10 = 24

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