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Homework answers / question archive / The quantity, Q, of a certain product manufactured depends on the quantity of labor, L, and of capital, K, used according to the function Q=900L1/2K2/3Q=900L1/2K2/3
The quantity, Q, of a certain product manufactured depends on the quantity of labor, L, and of capital, K, used according to the function Q=900L1/2K2/3Q=900L1/2K2/3. Labor costs $100 per unit and capital costs $200 per unit. What combination of labor and capital should be used to produce 36,000 units of the goods at minimum cost? What is that minimum cost?
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