According to production engineers, the firm's production function gives the following outputs that can be produced from various combinations of labor and capital. The firm can purchase labor services (w) for $20 per unit and capital services (r) for $40 per unit.
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-If input prices change to $40 per unit of labor (w = 40) and $20 per unit of capital (r = $20), what is the economically efficient input combination to produce 87 units? Explain.

Question

According to production engineers, the firm's production function gives the following outputs that can be produced from various combinations of labor and capital. The firm can purchase labor services (w) for $20 per unit and capital services (r) for $40 per unit.
‪ 
-If input prices change to $40 per unit of labor (w = 40) and $20 per unit of capital (r = $20), what is the economically efficient input combination to produce 87 units? Explain.

Quizplus · Accepted Answer

The Answer of According to production engineers, the firm's production function gives the following outputs that can be produced from various combinations of labor and capital. The firm can purchase labor services (w) for $20 per unit and capital services (r) for $40 per unit.
‪ 
-If input prices change to $40 per unit of labor (w = 40) and $20 per unit of capital (r = $20), what is the economically efficient input combination to produce 87 units? Explain.

According to Production Engineers, the Firm's Production Function Gives the Following