Suppose the Production Function Is F(L,K)= 3L + 2K

question 51

Essay

Suppose the production function is F(L,K)= 3L + 2K. In the short run Labour is fixed at L =
2. If w = 2 and v = 1, what is the cheapest way to make 12 units of output in the short run?

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking for a set of goods or services, showing the level of satisfaction or utility derived from each combination of goods.

Doggerel

Verse or words that are poorly written or expressed, often characterized by irregularities or crudeness.

Paasche Price Index

The Paasche Price Index is a consumer price index used to measure the change over time in the prices of a basket of consumer goods and services, weighted by the purchases made in the current period.

Doggerel

A term unrelated to economics, referring to irregularly or poorly constructed verse, often of a humorous or trivial nature.