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Unformatted text preview: 3) A plants production function is . For this production function, and . The price of labor services is $4 and of capital services is $5 per unit. a. In the short run, the plants capital is fixed at . Find the amount of labor it must employ to produce units of output. b. How much money is the firm sacrificing by not having the ability to choose its level of capital optimally?...
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This note was uploaded on 05/11/2011 for the course ECON 301 taught by Professor Sheng during the Spring '11 term at ITT Tech Pittsburgh.
- Spring '11