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The total production P of a certain product depends on the amount of labor, L, and capital, K, that is invested. The Cobb-Douglas model P(L,K)-bLaKi-a follows from certain economic assumptions where α and b are positive constants. Assume that production is fixed at a constant Po so that What values of L and K minimize the cost function C(L, K) mLnK where m is the cost of one unit labor and n is the cost of one unit capital? Show transcribed image text
The total production P of a certain product depends on the amount of labor, L, and capital, K, that is invested. The Cobb-Douglas model P(L,K)-bLaKi-a follows from certain economic assumptions where α and b are positive constants. Assume that production is fixed at a constant Po so that What values of L and K minimize the cost function C(L, K) mLnK where m is the cost of one unit labor and n is the cost of one unit capital?
Show transcribed image text Nelly StrackeLv2
19 Oct 2019