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A production function given by: Q = 10K^1/5L^1/2 (a) Find out the equation for an isoquant...

A production function given by: Q = 10K^1/5L^1/2 (a) Find out the equation for an isoquant to produce 20 units. Show your work. (2+4 = 6 points) (b) Write down the equation for the short-run cost function where K is fixed at 243, price of capital is 10 and price of labor is 9 per unit. Show your work. (2+4 = 6 points)

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Answer #1

Solution:

(a) Equation for isoquant to produce 20 units is

20 = 10K^(1/5)L^(1/2)

K^(1/5)L^(1/2) = 2

(b)

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