What is the optimal input bundle and cost of producing

Reference no: EM13183628

A U.S. firm is considering moving its production to Mexico. Its estimated production function is q = L^0.5K^0.5. The U.S. factor prices are w = r = 10. The Mexican factor prices are w* = 5, r* = 10. What is the optimal input bundle (L,K) and cost of producing q = 100 units in U.S. and in Mexico?

Reference no: EM13183628

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