Consider a production function Q=Q(K,L)=6K^(1/2)L^(1/3) with K as capital and L as labor input. Let the...
Consider a production function Q=Q(K,L)=6K^(1/2)L^(1/3) with K as capital and L as labor input. Let the price per unit of output be P=$0.50, the cost or rental rate per unit of capital be r=$0.10 and let the price (wage rate) of labor be w=$1.
a) find the profit max level of K and L and check with second order condition (my answer was L=3.375 and K=1.5)
b) Find max profit (I got profit=1.986)
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Consider a production function Q=Q(K,L)=6K^(1/2)L^(1/3) with K
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