Consider the following production​ function q = 100 L0 5K 5

Currently the

Question

Consider the following production​ function:

q = 100 L0.5K.5

Currently the

wage rate​ (w) is ​$20.00 and the price of capital​ (r) is ​$5.00.

If the firm is using 100 units of capital in​ production AND the production price is $10, how much labor should be employed to minimize costs and maximize profits?

Economics