Ask Question
7 December, 17:00

Suppose the production of solar powered lawn mowers is characterized by the production function Q = LE, where Q represents the number of ornaments produced. Suppose that the price of labor is $10 per unit and the price of energy is $1 per unit. Find the cost-minimizing combination of labor and energy for a manufacturer that wants to produce 121,000 lawn mowers.

+1
Answers (1)
  1. 7 December, 18:36
    0
    110 labor and 1100 energy

    Cost of 2,200 dollars

    Explanation:

    Q = L x E

    Cost = 10 L + E

    We use Excel solver tool to get this

    A B C

    1 Labor Energy

    2 Quantity 110 1100

    3 Cost 10 1

    4 output 121,000 (B2 * C2)

    5 cost 2,200 (B2*B3 + C2*C3)

    we want to minimize B5 (cost)

    changing the quantities (b2:c2)

    with the constrain that output b4 = 121,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose the production of solar powered lawn mowers is characterized by the production function Q = LE, where Q represents the number of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers