Problem Set #4 Solutions: Production and Cost Analysis
4) Suppose that you have the following production function: 21 y k l33 Where k represents the units of capital employed at your production facility, l is the number of labor hours employed and y is your total production. You face wage rate equal to $15 per hour and a cost of capital equal to $1,920 per unit. You have 1 unit of capital and that can’t be changed. a) You are currently employing ... ................
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