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1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L1/2 K¹/2 L represent the number of
Posted: Sun Jun 05, 2022 3:55 pm
by answerhappygod
- 1 Widget Factory Inc In Wisconsin Has The Following Production Function F L K 2l1 2 K 2 L Represent The Number Of 1 (27.99 KiB) Viewed 51 times
1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L1/2 K¹/2 L represent the number of labour hours. Workers at this factory are paid an hourly wage of $30 and they rent capital at $25/hour. Since this is a competitive market, the factory output the factory gets per is output is $50 per unit. Let's pretend the firm operates in the short run with capital fixed at 900, how many factory workers would Widget Factory Inc employ? What is their profit rate?