Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a) Joe will employ L*= _________ workers. b) Joe will use K*= _________ machines. c) The total cost will be _________.

Joe's coffee shop has the production function, q= 4k0.5 L0.5. If the price of labor, L, is 5 and the price of a machine, K, is 20, then, to minimize the cost of producing q=200 cups of coffee: a) Joe will employ L= _____ workers. b) Joe will use K= _ machines. c) The total cost will be _____.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.6P

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