question archive Semi-Con, a semi-conductor production firm, is trying to find the cheapest way to produce their product
Semi-Con, a semi-conductor production firm, is trying to find the cheapest way to produce their product
Subject:EconomicsPrice: Bought3
Semi-Con, a semi-conductor production firm, is trying to find the cheapest way to produce their product. Their production function is Q(L, K) = 2 ?LK?? , where L is the number of labor hours used and K is the number of capital hours used. This function has the resulting marginal products of labor of MPL = ?K/L?? and marginal product of capital MPK = ?L/K?? . They face prices of 20 dollars per hour for labor and 5 dollars per hour for capital. If they want to produce 12 semi-conductors at minimum cost, what input amounts should they pick and what will the cost be?
