What is his optimal input combination

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Suppose that George operates a laundromat which requires two inputs, capital (K) and labor (L). His production function is

Q=3K^(1/3)*L^(1/3).

a) Suppose George desires to produce 90 units of output, the cost of capital is $1 and the cost of labor is $27. What is his optimal input combination?

b) Suppose George desires to produce 90 units of output, and the cost of labor is $27. What is is capital demand curve?

c) Suppose George desires to produce 90 units of output, the cost of capital is $1 and the cost of labor is $27. What is his price elasticity of capital demand?

Reference no: EM131007283

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