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Consider the following production function:
q=100L^0.8 K^0.4.
Currently the wage rate (w) is $2.00 and the price of capital (r) is $2.00.
If the firm is using 20 units of capital in production, how much labor should be employed to
minimize cost?
Labor input= ???? units.(Enter a numeric response using a real number rounded to two decimal
places.

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Minimize Costs with Production Function and Labor Input

  • 1. Consider the following production function: q=100L^0.8 K^0.4. Currently the wage rate (w) is $2.00 and the price of capital (r) is $2.00. If the firm is using 20 units of capital in production, how much labor should be employed to minimize cost? Labor input= ???? units.(Enter a numeric response using a real number rounded to two decimal places.