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

Answer 1

Hello, @Krokodzilla ?

Answer 2

hey in here :P

Answer 3

Phew :)
Is this your question:
\[Q=K^{\frac{1}{2}}L^\frac{1}{2}\]
Where:
\(K=Wage\)
\(K=1\)

\(L=Rent\)
\(L=4\)
?

Answer 4

Rent is the cost of capital (K)

Wage is the cost of Labour (L)