Production process using two inputs labor and capital

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Reference no: EM13898698

A production process using two inputs, labor and capital, can be written as:

Q = 5LK;

Where Q represents output per day (tons). The unit costs of inputs are $150 for labor (L) and $1,000 for capital (K).

a. Determine the least cost combination of L and K if the firm decides to produce 1,000 tons per day.

b. What is the total cost of producing $1,000 tons per day?

c. Is this an increasing, decreasing or constant return to scale production function?

Reference no: EM13898698

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