Determine the number of units of capital and labour, Microeconomics

Assignment Help:

a) The production function of certain firm is given as

Q = 40 K1/2 L 3/4

A unit of capital and labour costs Kshs 44 and Kshs 36 respectively. The firm would like to maximize output subject to it spending Kshs 5000. Determine the number of units of capital and labour it should hire.

a) Supposing the firm in (a) is set to produce 400 units of the product, determine the number of K and L that the firm should hire so as to achieve this objective.


Related Discussions:- Determine the number of units of capital and labour

Indifference curve, What is indifference curve and its properties?

What is indifference curve and its properties?

Mixed economy, is south african economic system more allocative efficient?

is south african economic system more allocative efficient?

Economies of scope, Economies of Scope The ability of a organizati...

Economies of Scope The ability of a organization to decrease its unit costs by producing two or more products or services that involve complementary skills, experience and

Pancakes creation, PanCakes Creations is considering franchising its single...

PanCakes Creations is considering franchising its single brand of pancakes to stall-holders on the Zandvoort beach, which is 5 kilometers long. PanCakes Creations estimates that on

Law of conservation, Law of conservation of mass was proposed by Lavoisier ...

Law of conservation of mass was proposed by Lavoisier & verified by Landolt. According to Law of conservation of mass law Matter is neither created nor destroyed in the course of c

Feudalism, A type of economy (like in Europe in the Middle Ages) which is p...

A type of economy (like in Europe in the Middle Ages) which is primarily agricultural however productive enough to support a class of merchants andartisans. Feudal societies are co

Optimization, This is the practice of maximizing profits and revenues and m...

This is the practice of maximizing profits and revenues and minimizing costs, using marginal analysis.

Lending capacity of cash, Assume the banking system contains: Total Rese...

Assume the banking system contains: Total Reserves                         $ 80 billion Transactions Deposited          $800 billion Cash held by public                 $1

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd