Is there efficiency in


a) Ear Us (producer of hi-tech hearing aid) production function is Q = KL. The company over
the years uses input rates of 60 and 75 for capital and labour respectively. The price of capital
is $40 and labour is $35 per telephone.
(i) Is there efficiency in production? Why? (04 MARKS)
(ii) If $58,000 is allocated to production,what is the maximum output?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Is there efficiency in
Reference No:- TGS0934233

Expected delivery within 24 Hours