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Cost-minimizing choice of capital and labour

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Reference no: EM132066225

Q(K,L) = K1/3L1/3

Labour cost: w = $8 Capital rental cost: v = $8

1. Twelve homes must be built. What is its cost-minimizing choice of Capital and Labour? (Hint: What is the objective function? What is the constraint?)

2. Write out the cost equation. How much does it cost to build the 12 homes?

Reference no: EM132066225

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