Question

A customer service call center uses customer service I representatives (L) and rents computer software technolan Ck to serve customer calls. The produchon technology is Ilinear: servicing each customer call requires exactly 1 thour of the representative's time or exactly 30 minutes Kor half hour), of running the scytware application. Let Q represent the number of customers served in a Iday. The hourly wage and rental rate for L and K are w=810r = 840. as Draw the isoquant that represents this produchon I technology b) Write down the corresponding production funchon I Q = ACL, K les What is the cast - minering input combination, L and kt for serving Q customers & Ids What is the wst function, c(Q) ? es what is the Marginal Cost , Mc & SOOJU foa shomo o BCN soquan the corresp cost-minimizing mo cost function, CO)? Marginal Cost, MC? neira calls to call in the

Answer 1

a ) Q=f(L,K) ? ! - (31 a=fCL, K) = L + 1k (c) cast Mininization input combination At Equilibrim MRT SLX - MP - u MPL dolda I 2. MPK doldk = J = V 10 au MPL Then MPK it is than optinial to use Labour Capital YMPL <h then k®= 2Q.) kocan be obtained & L=0 by putting to in MPK Production functions.

d) Lu=0 C(O) = WLtok co) = 10L tuok. Broz K²=0 & acca)= 100 Mc = dcco) = 10 do Ice