Answer to Question #228250 in Macroeconomics for teeni

Question

•The expansion path indicates optimal input combinations, but it does not indicate the specific rate of output associate with that rate of input use.

•The output rate is determined by substituting n for the expansion path into the original production function.

•Next step

•Assume Q = 1000, w = Rs. 4 and r = Rs. 2, Determine efficient factor combination. 

Answer 1

$Q×W×R\\ 1000×4×2=8000$

Here, the firm can produce 1000 at the lowest possible cost .