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A firm has production function q=f(L, K), where L and K are the two inputs and q is the output. The specific production
Posted: Wed Jul 06, 2022 6:18 am
by answerhappygod
- A Firm Has Production Function Q F L K Where L And K Are The Two Inputs And Q Is The Output The Specific Production 1 (66.53 KiB) Viewed 18 times
A firm has production function q=f(L, K), where L and K are the two inputs and q is the output. The specific production function is given by q=A√ LK, where A is some positive constant. Currently, the firm producing q= 297 units, using the same amount of L and K. The price of L is w and the price of K is r. If the price of K increases (everything else held constant), then the firm should increase, decrease, or not change the amount of K.