Question

6. Cost Minimization Homework . Due in a day Perfect Complements Homework. Unanswered Fill in the Blanks Suppose a firm with production function q =m K} faces input prices w=1, -2, and wants to produce qu20 units of output. If this firm is cost-minimizing, it will hire units of labor, units of capital, and will incur a total cost of Unanswered Please select an answer to submit Sbmit [ Fullscreen lecture7 (2).pdf lecture8.pdf A lecture 9.pdf Show All

Answer 1

Answer
60
20
100
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The production function is the form of complement inputs
It requires the inputs in the proportion of reciprocal of the coefficient of the inputs
K=3L
Now we require 20 units of output the
K=20 and L=3*20=60 units

q=min(60/3,20)=min(20,20)=20

total cost =L*w +K*r
=60*1+20*2
=$100