A firm has the
following production function: q = KL
where q = output, L= labour measured in person...

Question

A firm has the
following production function: q = KL
where q = output, L= labour measured in person hours, K = capital measured in machine
hours. (The marginal product of labour
is K in this case and the marginal
product of capital is L here.) The wage is €1 per hour and the capital rental
charge is €1 per hour. Determine the firm’s minimum cost of making 1 unit of
output

David · Accepted Answer

A firm has the following production function: q = KL where q = output, l = labour measured in person hours, k = capital measured in machine hours. (the marginal product of labour is k in this case and the marginal product of capital is l here.

A firm has the following production function: q = KL where q = output, L = labour measured in person hours, K = capital measured in machine hours. (The marginal product of labour is K in this case and...

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