Our production manager has informed me that we are currently using capital and labor to produce output according to the following production function: Q= K1/2 L1/2. Our accounting team has informed me that we currently pay an hourly wage of $4 to labor and an hourly rental rate of $64 to capital and we are employing 64 workers with 36 french fry machines.
What is the optimal level of production? Note: labor & capital must be in whole units.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.