Micro Economics for BusinessTU Board 2022
Production function of a ABC shoes factory is Q = 100K^0.3L^0.5, w = Rs 80, r = Rs 100, P=Rs 10 where w is wage rate of labor, r is rental rate of capital and P is price of per pair shoes. a.…
10Production function of a ABC shoes factory is Q = 100K^0.3L^0.5, w = Rs 80, r = Rs 100, P=Rs 10 where w is wage rate of labor, r is rental rate of capital and P is price of per pair shoes. a. Determine optimal employment of two variable inputs under given production quota 4472 units. b. What will be the change in optimal employment of two inputs when production quota increases to 8904 units.
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