How much labor and capital firm hire to minimize cost, Microeconomics

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How much labor and capital firm hire to minimize cost

Suppose a firm's production function is given by Q = L^1/2*K^1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by:

MPL = (K^1/2)/(2L^1/2), and MPK= (L^1/2)/(2K^1/2) .

a) If the price of labor is w = 36, and the price of capital is r = 64, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output Q = 24?

b) What is the firm's Total Cost function TC(Q)?

c) What is the firm's marginal cost of production?

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Microeconomics: How much labor and capital firm hire to minimize cost

Reference No:- TGS0515238

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Recent Questions Asked Microeconomics

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Ask an Expert for Answer!!

Microeconomics: How much labor and capital firm hire to minimize cost

Reference No:- TGS0515238

Recent Questions Asked Microeconomics

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Q : What fiscal policies and monetary policies be appropriate

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