Suppose a Firm's Production Function Is Given by Q =

question 62

Essay

Suppose a firm's production function is given by Q = F(L,K)= 5LK,where L is the amount of labor and K is the amount of capital.The wage rate is $100 per unit of labor and the rental rate of capital is $50 per unit of capital.
a.What is the least-cost combination of capital and labor if the firm produces 1000 units of output?
b.What is the firm's long run cost function?
c.If the firm currently uses 10 units of capital,what is its short-run cost function?

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