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A firm's production function is q = 2K0.5 +5L 0.5 This production function exhibits decreasing Both capital and labor are where q is output per hour, K is the amount of capital used per hour and L is the amount of labor used per hour. returns to scale. subject to the law of diminishing returns. Capital costs r = $20 per hour and labor costs w = $100 per hour. The firm wants to produce 45 units per hour, so it should use responses as integers.) units of capital and units of labor per hour. (Enter your

A firm's production function is q = 2K0.5 +5L 0.5 This production function exhibits decreasing Both capital and labor are where q is output per hour, K is the amount of capital used per hour and L is the amount of labor used per hour. returns to scale. subject to the law of diminishing returns. Capital costs r = $20 per hour and labor costs w = $100 per hour. The firm wants to produce 45 units per hour, so it should use responses as integers.) units of capital and units of labor per hour. (Enter your

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 21P
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0.5 A firm's production function is q = 2K0.5 +5L This production function exhibits decreasing where q is output per hour, K is the amount of capital used per hour and L is the amount of labor used per returns to scale. subject to the law of diminishing returns. Capital costs r = $20 per hour and labor costs w = $100 per hour. The firm wants to produce 45 units per hour, so it should use responses as integers.) Both capital and labor are 7 units of capital and hour. units of labor per hour. (Enter your
Transcribed Image Text:0.5 A firm's production function is q = 2K0.5 +5L This production function exhibits decreasing where q is output per hour, K is the amount of capital used per hour and L is the amount of labor used per returns to scale. subject to the law of diminishing returns. Capital costs r = $20 per hour and labor costs w = $100 per hour. The firm wants to produce 45 units per hour, so it should use responses as integers.) Both capital and labor are 7 units of capital and hour. units of labor per hour. (Enter your
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