Mathematics · Optimization Theory
For the production function Q = L0.4 K0.6, using the method of Lagrange multipliers to minimize cost C = wL + rK subject to Q = Q0, the optimal ratio K/L is:
- 10.6r0.4w
- 20.4r0.6w
- 30.6w0.4r✓
- 40.4w0.6r
Correct answer
0.6w0.4r
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