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Question: 1. If a firm has a budget of £378 what combination of K and L will maximize output given the production function Q = 40K0.6L0.3 and prices for K and L of £20 per unit and £6 per unit respectively?
2. A firm faces the production function Q = 6K0.4L0.5. If it can buy input K at £32 a unit and input L at £8 a unit, what combination of L and K should it use to maximize production if it is constrained by a fixed budget of £36,000?
Suppose that n 2 bidders are submitting bids to win an item that is worth 100 to each of them.a bid is any number from (0,100). The highest bid wins the item. if m bidders submit the highest bid then they share the item, so each receives a benefit ..
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if the product price is 4 per unit and the price of the factor of production is 80 per unit the profit-maximizing
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Cougar Telemarketing is considering establishing a call center. The initial cost will be $2,750,000 with a $27,500 market value any time within a 13-year period. The fixed cost of the center will be $816,446 per year with an average variable cost of ..
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