Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

An entrepreneur bought two shoe factories. Shoes produced in each of the factories are identical, and the production function is given by =(K)⁰.⁵, where i denotes the factory, that is, =1,2. The two factories differ in their capital endowment: K1 =25,K2=100. Prices of K and are identical, ==$1.

The entrepreneur wishes to minimize the total costs of production in the short run. How should he divide the production between factories 1 and 2 ?

Sagot :

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.