Suppose that the production function for Hannah and Sam's home remodeling business is Q=FL.K) Q=10L0.2 0.3 Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $2,000 per week. a. What is the least-cost input combination for remodeling 100 square feet each week? Instructions: Round your answers to 2 decimal places. units of labor and 16.73 units of capital. 2.78 b. What is the total cost? Instructions: Round your answer to 2 decimal places. $ 55940
Suppose that the production function for Hannah and Sam's home remodeling business is Q=FL.K) Q=10L0.2 0.3 Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $2,000 per week. a. What is the least-cost input combination for remodeling 100 square feet each week? Instructions: Round your answers to 2 decimal places. units of labor and 16.73 units of capital. 2.78 b. What is the total cost? Instructions: Round your answer to 2 decimal places. $ 55940
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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