- #1
itsmylifenow
q = 3K^0.5 L^0.5
where q is the number of engines per week, K is the number of machines, and L is the number of labor. Each assembly machine rents
for r = $9000 per week, and each team costs w = $4000 per week. Engine
costs are given by the cost of labor teams and machines.
Suppose the plant is cost minimizing.
What is the cost function?
How much would it cost to produce q engines?
What are average and marginal costs for producing q engines?
What is the cost minimizing input combination of producing q =
1800?
Does the production function for this plant exhibit increasing, con-
stant or decreasing returns to scale?
where q is the number of engines per week, K is the number of machines, and L is the number of labor. Each assembly machine rents
for r = $9000 per week, and each team costs w = $4000 per week. Engine
costs are given by the cost of labor teams and machines.
Suppose the plant is cost minimizing.
What is the cost function?
How much would it cost to produce q engines?
What are average and marginal costs for producing q engines?
What is the cost minimizing input combination of producing q =
1800?
Does the production function for this plant exhibit increasing, con-
stant or decreasing returns to scale?