The productionfunction is Q=K^(0.5)L^
(0.5). Cost of wage=1 and cost of rent=4. What are the minimum costs in which the producer can produce Q amount of product in the long term?

a) 0
b) 2.5Q
c) 4Q
d) 4Q^2

Question

The productionfunction is Q=K^(0.5)L^
(0.5). Cost of wage=1 and cost of rent=4. What are the minimum costs in which the producer can produce Q amount of product in the long term?

a) 0
b) 2.5Q
c) 4Q
d) 4Q^2

ahsome · Answer

Hello, @Krokodzilla ?

anonymous · Answer

hey in here :P

ahsome · Answer

Phew :)
Is this your question:
$$Q=K^{\frac{1}{2}}L^\frac{1}{2}$$
Where:
$K=Wage$
$K=1$

$L=Rent$
$L=4$
?

anonymous · Answer

Rent is the cost of capital (K)

Wage is the cost of Labour (L)