Assume the following firm: Production function is: Q = min(L, 3 K) Wage rate = 45...

Question

Question

Assume the following firm:

Production function is: Q = min(L, 3 K)

Wage rate = 45

Rent = 60

Cost Outlay = 5,000

(Take all calculations to 2 decimal places)

Part 1: What is the optimal amount of labour hired? ____________

Part 2: What is the optimal amount of capital employed? ____________

Part 3: What is the optimal amount of output produced? ____________

Answer 1

Answer #1

Answer 2

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