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A paint manufacturing company has a manufacter function Q = K+ √L. For this manufacter function MPK = 1 and MPL = 1=(2√L). The rm faces a price of labor w that equivalent $1 per unit and a price of capital services r that equivalent $50 per unit.
a. Show that the rm's cost-minimizing input combination to produce Q = 10 involves no use of capital. (Hint: this is a corner solution.)
b. What must the price of capital down to in order for the rm to use a positive amount of capital, keeping Q at 10 and w at 1?
c. What must Q enhance to for the rm to use a positive amount of capital, keeping w at 1 and r at 50
Q. Define Pattern draft or taper? It is also termed as "draw". It is the taper placed on the pattern surface that are parallel to the direction in which the pattern is withdraw
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