Question

The company wants to reduce the cost of producing 2800 units of production per week. And commissioned a production engineer to identify alternative production techniques that would achieve this goal. Production techniques Different groups of capital (K) and labor (L) are used as follows:

K	100	90	80	70	60	50	40	30	20	10	8	7
L	8	9	11	14	18	23	30	40	55	80	90	100

Assume that the rental price for the capital is $ 5 and the average wage is $ 4. Determine the minimum production cost of 2,800 units of products and then demonstrate how to define the set of minimum-cost inputs using the marginal approach.

Answer 1