Consider a firm whose production is F(L,K)=2L0.5+K0.5

, where F represents the output produced; L represents the amount of labour used in the production, and K is the amount of capital. The price of labour is w=1

and the price of capital is r=2

, while output can be sold in a competitive market at a price p=£2

per unit. How much output should this firm produce to maximize profit in the long run?

asked by guest
on Oct 18, 2024 at 3:25 am



Mathbot Says...

I wasn't able to parse your question, but the HE.NET team is hard at work making me smarter.


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