Im working on a Economics question and need guidance to help me study.
Suppose the hourly wage rate is $13, the rental price of capital is $3 and the price of output is constant at $30 per unit. Firm’s production technology is q = 4K0.25E0.75, the marginal product of employment is MPE =3K0.25E-0.25 and the marginal product of capital is MPK = K-0.75E0.75. What is firm’s optimal demand of labor if firm plans to produce q=20 units of outputs in the long-run? (please keep 1 decimal place in your answer).
hourly wage rate
marginal product of labor
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