Question #73786

Find the equilibrium of L and K subject to a given output:

Minimize cost: C = 40K+ 20L Subject to Q = 60 L K= 3000

Sir please solve this question

Minimize cost: C = 40K+ 20L Subject to Q = 60 L K= 3000

Sir please solve this question

Expert's answer

1) So, L*K = 3000, L = 3000/K;

2) C = 40K + 20L, for minimizing cost we should get that MCK = 40, MCL = 20;

3) L/K = MCL / MCK = 20/40 = 0.5, L = 0.5*K

0.5*K = 3000/K, K = 77.5, L = 38.7

C = 40 * 77.5 + 20 * 38.7 = 3874

2) C = 40K + 20L, for minimizing cost we should get that MCK = 40, MCL = 20;

3) L/K = MCL / MCK = 20/40 = 0.5, L = 0.5*K

0.5*K = 3000/K, K = 77.5, L = 38.7

C = 40 * 77.5 + 20 * 38.7 = 3874

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## Comments

Assignment Expert04.03.19, 16:55K=sqrt(6000)=77.5

Dil02.03.19, 10:420.5*K = 3000/K, K = 77.5, L = 38.7 How came K=77.5????

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