Business, 31.05.2021 15:50 mncampbell01

Suppose that the Acme Gumball Company has a perfect complements production function that requires it to use two gumball presses (K) and one worker (L) to produce 1000 gumballs per hour. Let Q measure the number of gumballs per hour in thousand, i. e. Q = 1 for the production of 1000 gumballs per hour. a. Write the production function for gumballs. What is the lowest cost combination of K and L that would allow Acme to produce 50,000 gumballs per hour?
b. Suppose that the price of gumball press is $3 per hour and the price of labor is $5 per hour. What is the total cost of producing 50,000 gumballs per hour?

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