Question #73811
Find the equilibrium of L and K subject to a given output:
minimize cost: C=40K+20L subject to Q=60LK = 3000
minimize cost: C=40K+20L subject to Q=60LK = 3000
Expert's answer
Minimize cost: C = 40K + 20L subject to Q = 60LK = 3000 or LK = 50.
The equilibrium of L and K subject to a given output is K = 5 units and L = 10 units, at this point total cost is minimized.
We can find this solution using "find solution" in excel.
The equilibrium of L and K subject to a given output is K = 5 units and L = 10 units, at this point total cost is minimized.
We can find this solution using "find solution" in excel.
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