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28 Sep 2019
A firm has a production function Q=F(K, L) with the constant return to scale, where k is units of capital and L is united of labour. Input prices are r=$2 per unit of K and w=$1 per unit of L. When it produces 5 units of output, it uses 2 units of capital and 3 units of labour. When its long-run total cost is equal to $70, how much capital and labour it will employ to product how many units of output? What is the long-run average cost?
A firm has a production function Q=F(K, L) with the constant return to scale, where k is units of capital and L is united of labour. Input prices are r=$2 per unit of K and w=$1 per unit of L. When it produces 5 units of output, it uses 2 units of capital and 3 units of labour. When its long-run total cost is equal to $70, how much capital and labour it will employ to product how many units of output? What is the long-run average cost?
Nusrat FatimaLv10
28 Sep 2019