Exhibit 7 2Acme Container Corporation produces egg cartons that are - ProProfs Discuss
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Exhibit 7-2Acme Container Corporation produces egg cartons that are sold to egg distributors.  Acme has estimated this production function for its egg carton division:    Q = 25LK,     where Q = output measured in cartons , L = labor measured in person hours, and K = capital measured in machine hours.  Acme currently pays a wage of $10 per hour and rental price for  capital is $25 per hour.  Acme has decided to spend $1000 on hiring L and K to produce egg cartons.Look at exhibit 7-2 above.   What amount of L and K will Acne hire to produce egg cartons? 



A. L=40, K=24
B. L=50, K=20
C. L=20, K=50
D. L=40, K=40
E. None of the above

This question is part of Chapter 7: Microeconomics
Asked by Twright on Mar 18, 2017

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1 Answer

John Smith

John Smith

Answered on Mar 18, 2017

B. l=50, k=20
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