Find what happens to cost minimization capital labor ratio


statistician at the learning computer co has estimated the following production function for the semiconductors.

Q= L 0.1 (L Power of 0.1) K0.9 (K power of 0.9)

Q=Output, L= Labor and K=Capital

a) determine the returns to scale exhibited by the production function.

b) Detemine the cost minimization labor capital ratio for a given output, if per unit price of labor and capital are $10 and $50, respectively.

c) Determine what happens to the cost minimization capital labor ratio if a) the price of labor rises by 20%. b) price of capital rises by 20% c) price of labor rise by 20%.

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Microeconomics: Find what happens to cost minimization capital labor ratio
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