Question

Suppose that a firm's production function is given by Q = 3L + 6K, where L and K stand for hours of labor and capital used respectively. The firm wants to produce 60 units of output, and the current wage rate (w) is $2, while the rental rate (r) is $6. If the firm chooses its input combination optimally, how much will it cost the firm to produce this output? a) 53.36 b) 40 c) 120 d) 60

Name: suppose that a firms production function is given by q 3l 6k where l and k stand for hours of labour and capital used respectively the firm wants to produce 60 units of output and the curren 15074
Uploaded: 2022-08-08T01:59:46-08:00
Duration: 2 min 1 s
Channel: Azat Nurmukhametov
Description: suppose that a firms production function is given by q 3l 6k where l and k stand for hours of labour and capital used respectively the firm wants to produce 60 units of output and the curren 15074

          Suppose that a firm's production function is given by Q = 3L + 6K, where L and K stand for hours of labor and capital used respectively. The firm wants to produce 60 units of output, and the current wage rate (w) is $2, while the rental rate (r) is $6. If the firm chooses its input combination optimally, how much will it cost the firm to produce this output?
a) 53.36
b) 40
c) 120
d) 60

Added by Deborah S.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Azat Nurmukhametov

08/08/2022

Step 1

So, 60 = 3L L = 20 Show more…

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Suppose that a firm's production function is given by Q = 3L + 6K, where L and K stand for hours of labor and capital used respectively. The firm wants to produce 60 units of output, and the current wage rate (w) is $2, while the rental rate (r) is $6. If the firm chooses its input combination optimally, how much will it cost the firm to produce this output? a) 53.36 b) 40 c) 120 d) 60