Scenario 2:The production function for earthquake detectors (Q) is - ProProfs Discuss
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Scenario 2: The production function for earthquake detectors (Q) is given as follows:Q = 4K1/2L1/2 , where K is the amount of capital employed and L is the amount of labor employed. The price of capital, PK, is $18 and the price of labor, PL, is $2. Refer to Scenario 2. Suppose that you receive an order for 80 earthquake detectors. How much capital will you use to minimize the cost of 80 earthquake detectors?



A. A. 20/3
B. B. 5
C. C. 2/3
D. D. 80/18
E. E. none of the above

This question is part of Chapter 7: Microeconomics
Asked by Twright, Last updated: Apr 05, 2020

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1 Answer

John Smith

John Smith

Answered Mar 18, 2017

A. 20/3
 

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