A firm producing cars

Economics Feb 06, 2022

A firm producing cars. The production function for shoes (Q) is: Q = K\/2L12 where K is capital and Lis labor. The price of K is $8 and the price of L is $2. c. What is the average product of capital, average product of labor, marginal product of capital, and marginal product of labor? d. Does capital obey the "law of diminishing returns?" Explain. e. Suppose that firm wants to produce 144 cars, how much K and L should be employed to minimize costs?