Explain how many units of labor and how many machines

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Reference no: EM1351759

A firm uses labor and machines to produce output according to the production function , where L is the number of units of labor used and M is the number of machines. The cost of labor is $40 per unit and the cost of using a machine is $10. MPL is and MPK is .

a. Explain how many units of labor and how many machines would the firm use to produce 40 units in the cheapest possible way?

b. How much would this cost?

Reference no: EM1351759

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