A profit maximizing firm produces output using capital, K, and labour, L, in the following production technology: Y = 2*K^0.5*L^0.5 The rental rate of capital is r=0.01. What is the capital-labour ratio of the firm? (State your answer to 2 decimal places.)

A profit maximizing firm produces output using capital, K, and labour, L, in the following production technology: Y = 2K^0.5L^0.5 The rental rate of capital is r=0.01. What is the capital-labour ratio of the firm? (State your answer to 2 decimal places.)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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Please answer fast please arjent help please

A profit maximizing firm produces output
using capital, K, and labour, L, in the
following production technology:
Y = 2*K^0.5*L^0.5
The rental rate of capital is r=0.01. What is
the capital-labour ratio of the firm?
(State your answer to 2 decimal places.)

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