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:

Connective

Logical operators that join statements or propositions in logical expressions, such as "and", "or", and "not".

Tomatoes

A red or yellowish fruit with a juicy pulp, used as a vegetable in cooking and eaten raw.

Unasserted

Not claimed or stated with confidence or certainty.

Component Proposition

A specific statement or claim that forms part of a larger argument or theory, contributing to its overall conclusion.