Consider the following production function: q = 100 L 0.5 Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.
Consider the following production function:
q = 100 L0.5K.5
Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00.
If the firm is using 100 units of capital in production AND the production price is $10, how much labor should be employed to minimize costs and maximize profits?
Is there a way to use MPL and MPK while solving
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