Least-Cost Rule The production function for a company is given bywhere x is the number
Chapter 7, Problem 39(choose chapter or problem)
Least-Cost Rule The production function for a company is given bywhere x is the number of units of labor and y is the number of units of capital. Suppose that labor costs $48 per unit, capital costs $36 per unit, and management sets a production goal of 20,000 units. (a) Find the numbers of units of labor and capital needed to meet the production goal while minimizing the cost. (b) Show that the conditions of part (a) are met when This proportion is called the Least-Cost Rule (or Equimarginal Rule).
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