A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = NK %3D The price of labour is $10, and price capital $20. If the firm needed to produce 100 units, how much capital and how much labour should they use in the long-run?
A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = NK %3D The price of labour is $10, and price capital $20. If the firm needed to produce 100 units, how much capital and how much labour should they use in the long-run?
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 8P
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![A firm operates in a perfectly competitive output market and a perfectly competitive input
market.
The production function for the firm is:
f(N, K) = N K
The price of labour is $10, and price capital $20.
If the firm needed to produce 100 units, how much capital and how much labour should they use
in the long-run?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc940672-f56b-4a37-98a8-27d1ab935186%2Ffc662b06-34ab-4521-bf94-fc44826a09ac%2Fi5qb6h3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A firm operates in a perfectly competitive output market and a perfectly competitive input
market.
The production function for the firm is:
f(N, K) = N K
The price of labour is $10, and price capital $20.
If the firm needed to produce 100 units, how much capital and how much labour should they use
in the long-run?
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