What is the cost-minimizing input mix for producing

Reference no: EM133711213

Question: As a member of Analysts Incorporated consulting firm, you have carefully collected data on a manufacturing firm's output, capital and labor. The data are in the spreadsheet below. You believe the firm's production function to be Cobb-Douglas, Q = CKaLb. Click here for the Excel Data File a. Use regression analysis to get estimates for the parameters a and b from the Cobb-Douglas production function. Round your answers to the nearest hundredth. Estimate for a: .46 Estimate for b: .47 Are your estimates statistically significant? Both coefficients are statistically significant. b. Suppose capital is fixed at 400 and the price of output is $100. If labor costs $95 per unit, how many units of labor should the firm hire to maximize profits? Round your answer to the nearest whole number. 257 c. If labor costs $75 per unit and capital costs $125 per unit, what is the cost-minimizing input mix for producing 4,000 units of output?

Reference no: EM133711213

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