What would you suggest to the firms mix of labor

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Suppose a firm assumes the following production function: Log Q = 2.08 + .6 log K + .8 log L

a). Currently, the firm hires 10,000 workers and employs 50 units of capital. The "wage" of capital and labor are $500 and $800 respectively, what would you suggest to the firm's mix of labor and capital if it produces 2,000,000 units?

b). Is this an example, of a Cobb-Douglas Production function?

c). would you suggest this firm merge with similar firms? Explain.

Reference no: EM13688932

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