Consider The Following Production Function Q 100 L 0 5 Currently The Wage Rate W
Consider the following production function:
q = 100 L0.5K.5
Currently the wage rate (w) is $20.00 and the price of capital (r) is $5.00.
If the firm is using 100 units of capital in production AND the production price is $10, how much labor should be employed to minimize costs and maximize profits?
Is there a way to use MPL and MPK while solving