A Firm Spends $12,000 Per Day Producing a Good

question 127

Essay

A firm spends $12,000 per day producing a good. The wage per worker is $200 per day and rental per unit of capital is $400 per day. The firm faces the production function Q = 3K^1/3L^2/3 with MP_K = L^2/3/K^2/3 and MP_L = 2K^1/3/L^1/3. The cost-minimizing level of capital will be_____ and the cost-minimizing level of labor will be _____.

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Definitions:

Low-Cost Leader

A company that can produce or offer goods and services at a lower cost than its competitors, often leveraging this advantage to dominate market share.

Human Resources (HR) Triad

Refers to the three key roles or functions within HR: strategic partner, employee advocate, and change champion.

Stakeholders

Individuals, groups, or organizations that have a vested interest in the performance, decisions, and success of a company or project, including employees, investors, customers, and suppliers.

Quality Service

the measure of how well the service level delivered matches customer expectations.