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Suppose the Firm's Production Function Is Q = K1/3L2/3, Where

Question 114

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Suppose the firm's production function is Q = K1/3L2/3, where the MPK = Suppose the firm's production function is Q = K<sup>1/3</sup>L<sup>2/3</sup>, where the MPK = and MP<sub>L</sub> = . a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?
and MPL = Suppose the firm's production function is Q = K<sup>1/3</sup>L<sup>2/3</sup>, where the MPK = and MP<sub>L</sub> = . a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio? b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?
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a. If the rental rate of capital R = $30 and the wage rate W = $40, what is the cost-minimizing capital-to-labor ratio?
b. If the rental rate of capital R is $35 and the wage rate W is $70, how many units of labor and capital should the firm use to produce 12 units of output?

Correct Answer:

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a. Set MRTS = W/R:
MPL/MPK = W/R blured image 2K/L = 4...

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