question archive A plant's production function is Q = 2KL + K The price of labor services w is S 4 and of capital services T is $ 5 per unit
A plant's production function is Q = 2KL + K The price of labor services w is S 4 and of capital services T is $ 5 per unit
Subject:EconomicsPrice: Bought3
A plant's production function is Q = 2KL + K The price of labor services w is S 4 and of capital services T is $ 5 per unit. a) In the short run, the plant's capital is fixed at K = 9. Find the amount of labor it must employ to produce Q - 45 units of output Show the isoquant and isocost associated with your solution. b) How much money is the firm sacrificing by not having the ability to choose its level of capital optimally? Show the isoquant and isocost-associated with your solution in the graph area provided in part a. (Note: Use two decimals for the optimal labor and capital).
