3. (5 marks) Suppose a unit of capital costs $4 and a unit of labour costs $8. The production function is Q = 18KL + 6L²

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3. (5 marks) Suppose a unit of capital costs $4 and a unit of labour costs $8. The production function is Q = 18KL + 6L²

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3 5 Marks Suppose A Unit Of Capital Costs 4 And A Unit Of Labour Costs 8 The Production Function Is Q 18kl 6l 1
3 5 Marks Suppose A Unit Of Capital Costs 4 And A Unit Of Labour Costs 8 The Production Function Is Q 18kl 6l 1 (48.73 KiB) Viewed 12 times
3. (5 marks) Suppose a unit of capital costs $4 and a unit of labour costs $8. The production function is Q = 18KL + 6L². (a) Using Lagrange multipliers calculate the maximum possible output Q when the total input cost is $600. (b) Measuring labour (L) on X-axis and capital (K) on Y-axis, show the optimal level of L and K in a diagram.
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