The Production Function for a Firm Is Q = Min(2K

question 68

Essay

The production function for a firm is Q = min(2K, L). The price per unit of capital is $40, and the price per unit of labor is $60.
a. What is the minimum cost of producing 10 units of output?
b. Using an isoquant and isocost line, illustrate the cost-minimizing input choice of the firm producing 10 units of output.

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