Essay
A firm spends $12,000 per day producing a good. The wage per worker is $200 per day and rental per unit of capital is $400 per day. The firm faces the production function Q = 3K1/3L2/3 with MPK = L2/3/K2/3 and MPL = 2K1/3/L1/3. The cost-minimizing level of capital will be_____ and the cost-minimizing level of labor will be _____.
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Cost minimization is achieved when the M...View Answer
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