Answer to Question #111463 in Microeconomics for D.M.L.M.Disanayaka

Question #111463

Q=100K^0.5L^0.5,C*=100,w=30,r=40,determine the amount of capital and labour required to maximum output.what is the maximum output?

Expert's answer

The output is maximized when:

"MPL\/MPK = w\/r = K\/L,"

K/L = 3/4,

Q = 75L.

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