For which of the following production functions could the long-run expansion path be vertical, assuming w...
For which of the following production functions could the long-run expansion path be vertical, assuming w = r? (Assume, per usual, that K is on the y-axis and L is on the x-axis.)
a. ? = √? + 2?
b. ? = 2? + √?
c. ? = min (?, 2?)
d. ? = 2? + ?
e. ? = ?^ 1/4 * ?^ 3/4
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For which of the following production functions could the
long-run expansion path be vertical, assuming w...
8. For which of the following production functions could the long-run expansion path be vertical assuming...
8. For which of the following production functions could the long-run expansion path be vertical assuming w=r? (Assume, per usual, that K is on the y-axis and L is on the x-axis.) a. Q = V1 + 2K b. Q = 2L + VK c. Q = min (L, 2K) d. Q = 2L+K e. Q = /1/4K3/4
Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm...
Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm is given by q Lo.5 K0,5. The prices of labor and capital are given by w 2 and r 5, respectively. a) Write the firm's cost minimization problem formally. b) What returns to scale does the production function exhibit? Why? c) What is the optimal capital to labor ratio? Show your work. d) What is the slope of the expansion path and what is...
Given the following long run production and cost functions: q=LPK1/4 C = 12L +4K (A) What...
Given the following long run production and cost functions: q=LPK1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? Clearly type out your answer to parts (A), (B) and (C) in the space provided. Retain all of your handwritten work for this question to be uploaded separately after you have completed the...
Given the following long run production and cost functions: 4 = 1/3K2 C = 15L +...
Given the following long run production and cost functions: 4 = 1/3K2 C = 15L + 3K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? HTML Editora
1. A firm operates in the long run. Its long-run production function is given as: Q...
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
Given the following long run production and cost functions: q=L3K1/4 C = 12L +4K (A) What...
Given the following long run production and cost functions: q=L3K1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change?
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K,...
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K, L) = min{įK, L}, and q = = f(K, L) = K (1/4) L (3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
A firm has a production function Y = 2 Ko5L05 use w to denote the wage...
A firm has a production function Y = 2 Ko5L05 use w to denote the wage rate and r to denote the capital rental price. Let us first consider the short run situation, where the firm has K = 25 and r = 2. In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? a. b. Let us first consider the short run...
Answer e and f only please! 7) Consider a firm with the long-run technology Q-F(K, N)-KN....
Answer e and f only please!
7) Consider a firm with the long-run technology Q-F(K, N)-KN. a) With K on the vertical axis and L on the horizontal, draw some isoquants for this firm. b) Label the Q=10 isoquant. c) For input prices w=3, r=2, draw some isocost lines for the firm. d) By equating the MRTS and the isocost line slope, fine the optimal input mix in the long run if Q=10. c) What happens to this input mix...
8. For which of the following production functions could the long-run expansion path be vertical assuming w=r? (Assume, per usual, that K is on the y-axis and L is on the x-axis.) a. Q = V1 + 2K b. Q = 2L + VK c. Q = min (L, 2K) d. Q = 2L+K e. Q = /1/4K3/4
Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm is given by q Lo.5 K0,5. The prices of labor and capital are given by w 2 and r 5, respectively. a) Write the firm's cost minimization problem formally. b) What returns to scale does the production function exhibit? Why? c) What is the optimal capital to labor ratio? Show your work. d) What is the slope of the expansion path and what is...
Given the following long run production and cost functions: q=LPK1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? Clearly type out your answer to parts (A), (B) and (C) in the space provided. Retain all of your handwritten work for this question to be uploaded separately after you have completed the...
Given the following long run production and cost functions: 4 = 1/3K2 C = 15L + 3K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? HTML Editora
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
Given the following long run production and cost functions: q=L3K1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change?
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K, L) = min{įK, L}, and q = = f(K, L) = K (1/4) L (3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
A firm has a production function Y = 2 Ko5L05 use w to denote the wage rate and r to denote the capital rental price. Let us first consider the short run situation, where the firm has K = 25 and r = 2. In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? a. b. Let us first consider the short run...
Answer e and f only please!
7) Consider a firm with the long-run technology Q-F(K, N)-KN. a) With K on the vertical axis and L on the horizontal, draw some isoquants for this firm. b) Label the Q=10 isoquant. c) For input prices w=3, r=2, draw some isocost lines for the firm. d) By equating the MRTS and the isocost line slope, fine the optimal input mix in the long run if Q=10. c) What happens to this input mix...
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