What is the cost-minimizing input mix for producing units

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Reference no: EM13214365

A firm produces output according toa production function Q = F(K,L) = min {2K,4L}.

a. How much output is produced when K =2 and L = 3?

b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 4 units of output?

c. How does answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour?

Reference no: EM13214365

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