Derive the amount of capital and labour required to produce


A firm produces according to the following production function: Q = K.25L.75. The price of K is $4 per unit, and the price of L is $6 per unit. What is the optimal capital/labor ratio?

a. What is the optimal capital/labor ratio?

b. Derive the amount of capital and labour required to produce 400 units of output. At the given prices what is the total cost of producing 400 units of output?

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Business Management: Derive the amount of capital and labour required to produce
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