A firm sells its output in a perfectly competitive market at a fixed price of R800 per unit. It buys the two inputs K and L at prices of R40 per unit and R5 per unit respectively, and faces the production function: q= 3.1K⁰•

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A firm sells its output in a perfectly competitive market at a fixed price of R800 per unit. It buys the two inputs K and L at prices of R40 per unit and R5 per unit respectively, and faces the production function: q= 3.1K⁰•

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