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Homework question. Suppose the wage rate is 20 , and the rental rate of capital r is 4 . A firm has a Cobb-Douglas production function with inputs K and L being capital input and labor input. The coefficient alpha in the Cobb-Douglas production function is 0.5 . When a firm maximizes profit, the marginal product of capital is 20 . What is the marginal re labor?.

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Homework question. Suppose the wage rate is 20 , and the rental rate of capital r is 4 . A firm has a Cobb-Douglas production function with inputs K and L being capital input and labor input. The coefficient alpha in the Cobb-Douglas production function is 0.5 . When a firm maximizes profit, the marginal product of capital is 20 . What is the marginal re labor?

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Homework question Suppose the wage rate is 20 and the re.pdf

  • 1. Homework question. Suppose the wage rate is 20 , and the rental rate of capital r is 4 . A firm has a Cobb-Douglas production function with inputs K and L being capital input and labor input. The coefficient alpha in the Cobb-Douglas production function is 0.5 . When a firm maximizes profit, the marginal product of capital is 20 . What is the marginal re labor?