ZuoTi.Pro
Question

6. Consider the production function Q= LK. Suppose the price of labor equals w and the price of capital equals r. Derive expr

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer - 6 Minumize C Subject do wL + rk LK = Q. a-LK) Arst der lauditian (2) AK (3 Y AL 9к e get inideny (2 by 13) oL KE LO

0 0
Add a comment
Know the answer?
Add Answer to:
6. Consider the production function Q= LK. Suppose the price of labor equals w and the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose the production function is given as Q = VLK. Suppose also that the price of...

    Suppose the production function is given as Q = VLK. Suppose also that the price of labor w = 10 and the price of capital r = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...

  • 7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to...

    7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to produce Q=100 units. Later the price of labor w goes up to $4. Find the optimal input combinations for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices.

  • 4. Your production function is Q = LK. The wage for L is w and the...

    4. Your production function is Q = LK. The wage for L is w and the rental rate for K is r. You need to produce Q units of output. (a) What is your total cost equation? (b) What is your output constraint? (c) Find the Marginal Rate of Technical Substitution (MRTS) for your production function. (d) In general (for any values of w and r), what relationship must hold between L and K at the cost minimizing bundle? (e)...

  • (c) Consider a competitive producer with a production function of l0.4k0.1 , labor price of w...

    (c) Consider a competitive producer with a production function of l0.4k0.1 , labor price of w and        capital price of 1(not v, the number one), and an output price of p. Suppose capital in        the short run is fixed at k.         Given:         Short Run Cost Function (C):         C = k + w(q2.5/k0.25)         Profit Maximizing Quantity (q):         q = (w /4k0.25p)1/0.75         Question: Find the firm’s unconditional demand for labor?

  • Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK...

    Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK with associated marginal products MPL=K, MPK =L. The price of labor is w=2 and the price of capital is r=1. Does Acme's production function for anvils exhibit increasing, constant or decreasing returns to scale? Justify your answer

  • 1. The production of airframes is characterized by a production function: Q=(Lk + K2)2. The price...

    1. The production of airframes is characterized by a production function: Q=(Lk + K2)2. The price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-minimizing combination of labor and capital for an airframe manufacturer that wants to produce 121,000 airframes.

  • 3. Suppose the production of Crocs is characterized by the production function Q = LK, where...

    3. Suppose the production of Crocs is characterized by the production function Q = LK, where represents the number of pairs of Crocs produced. Suppose that the price of labor is $10 per unit and the price of capital is $1 per unit. a. Graph the isoquant for Q=121,000. b. On the graph you drew for part a, draw several isocost lines including one that is tangent to the isoquant you drew. What is the slope of the isocost lines?...

  • #6 6. A manufacturer uses labor and capital to produce widgets. Labor and capital are perfect...

    #6 6. A manufacturer uses labor and capital to produce widgets. Labor and capital are perfect substitutes and the production function is Q-2K+IL a. Derive and graph the isoquants for Q-20 and 0-40 units of output (not all units of K will be whole numbers) (20 - 2K+ILK -10-0.5L.) 0-20 LK 040 LK 10 b. Suppose the price of labor is w 51 and the price of capital is for a total cost of $10 and $15. 51. Graph the...

  • (1) A firm has the following production technology: F(LK)-4LIKİ. (a) Derive the conditional labor demand in...

    (1) A firm has the following production technology: F(LK)-4LIKİ. (a) Derive the conditional labor demand in the short run, IS (Q, w,r, R) (b) Derive unconditional labor demand in short run, 15 (p,w,r,R (c) In two sentences or less explain your answers in (a) and (b) differ

  • 10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital,...

    10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function as a function of w., and q. (b) Find the profit maximizing output level and the profit as a function of w, r, and p. 11. Consider the production function: f(KL)=K+L. Let w and r denote the price of labor and capital, and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT