A firm has the production function X = LK (X = output, L = labour, K = capital); labour and capital prices are Ksh. 8 and Ksh. 10 per unit; and it desires to produce 32 units of output. What is the least cost combination of labour and capital? Consider the production function, Q = 86 L0.61 K 0.39
A firm has the production function X = LK (X = output, L = labour, K = capital); labour and capital prices are Ksh. 8 and Ksh. 10 per unit; and it desires to produce 32 units of output. What is the least cost combination of labour and capital? Consider the production function, Q = 86 L0.61 K 0.39
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.6P
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. A firm has the production function X = LK (X = output, L = labour, K = capital); labour and
capital prices are Ksh. 8 and Ksh. 10 per unit; and it desires to produce 32 units of output.
What is the least cost combination of labour and capital? Consider the production function,
Q = 86 L0.61 K
0.39
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