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Question: A firm's production function is given by Q = 50K0.7 L0.3
Each unit of capital costs $90 and each unit of labour costs $120.
(a) Find the maximum level of output if the total input costs are $1,100,000 (round your result to the nearest integer number and type it without any thousand symbol)
Q = Blank 1
(b) Estimate the increase in production if an additional $5,000 is made available (round your result to the nearest integer number and type it without any thousand symbol) Increase of production = Blank 2
(c) Are the ratio of the marginal product of capital to price, and the ratio of the marginal product of labour to price equal to the Lambda (Lagrange multiplier)? (type YES or NO) Blank 3
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