Question #256528

Margarita Robotics has a daily production function given by Q= K 0.5 L 0.5, where K is the monthly of hours of use for a precision lathe (capital) and L is the monthly number of machinist hours (labor). Suppose that each unit of capital costs $40 and each unit of labor costs $10



1
Expert's answer
2021-10-25T17:52:31-0400
δQδK=0.5(LK)0.5\frac{\delta Q}{\delta K}=0.5(\frac{L}{K})^{0.5}

δQδL=0.5(KL)0.5\frac{\delta Q}{\delta L}=0.5(\frac{K}{L})^{0.5}

r=40r=40

w=10w=10

LK=4\frac{L}{K}=4

L=4KL=4K


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