contestada

ABC Manufacturing Company produces good Q. The firm's production function is Q = 2L 0.4K0.6, where Q = number of units of good Q, L = labor measured in person hours, and K = capital measured in machine hours. ABC's labor cost is $50 per hour, while capital cost is $100 per hour. (25 marks) = a. Given the information above, explain whether the firm's production function exhibit increasing, constant, or decreasing returns to scale. (5 marks) b. Determine ABC's optimal capital/labor ratio. (8 marks) c. Express optimal capital (K*) and labor (L*) in terms of Q. (6 marks) d. Find ABC's total cost function in terms of Q. (6 marks)

Respuesta :