M&O Construction has the production function Q=6L+36K. The price of capital r=$30.

a) What would the price of labour (w) have to be in order for the firm to choose to use both capital and labour as inputs?
b) Suppose w=6 and target output is 720. What is the optimal choice of L and K for this firm?

    • 7 years ago
    ECO - M&O Construction
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