What is the average product of capital and labor

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suppose the hourly wage is $2 and the price of each unit of capital is $8. The production function is given by q = (E^1/2)(K^1/2) and the marginal product of labor and capital are MPe =(K^1/2)/(2E^1/2) and MPk =(E^1/2)/(2K^1/2) respectively.

A)what is the average product of capital and labor?

B)what is the cost minimization choice of capital and labor if the firm decides to produce 144 units of output?

Reference no: EM13208604

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