What is the optimal capital/labor ratio

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Reference no: EM13151245

A firm produces according to the following production function: $Q = K^{.25}L^{.75}$ where Q= units of output,K =units of capital, and L= units of labor. Suppose that the price of K is $4 per unit, and the price of L is $6 per unit.

a. What is the optimal capital/labor ratio?

b. If the firm can spend a total $320 in K and L, what is the optimal amount of K and the optimal amount of L?

Reference no: EM13151245

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