Hello below is the question , Many thanks for your help :)
A competitive firm uses two inputs, capital (?) and labour (?),
to produce one output, (?). The price of capital, ??, is $1 per
unit and the price of labor, ??, is $1 per unit. The firm operates
in competitive markets for outputs and inputs, so takes the prices
as given. The production
function is ?(?,?)=3?0.25?0.25. The maximum amount of output
produced for a given amount of inputs is ?=?(?,?) units.
a) Use the method of Lagrange to find the conditional factor
demands for cost minimization.
e) Draw the firm’s total cost function, average cost function, and
marginal cost function on a diagram. Clearly label the axes, the
curves, and any key points on the graph (eg., axis intercepts,
curve intersections, and minimums) with the numbers specifying the
exact prices and quantities at these points. What are the
coordinates of the points where the average cost curve and marginal
cost curve intersect with the total cost curve? Show the firm’s
long-run supply function on your diagram and write a supply
function for the firm
h) Using your supply function, find the profit maximising quantity
if the price of output ?=4. What price would be needed for the firm
to supply 18 units of output?
Hello below is the question , Many thanks for your help :) A competitive firm uses...
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Problem 3 [24 marks] A competitive firm uses two inputs, capital (k) and labour (), to produce one output, (y). The price of capital, W, is S1 per unit and the price of labor, wi, is SI per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is f(k,l) 3k025/025. The maximum amount of output produced for a givern amount of inputs is y(k, l)...
Question 5 If the price of the output of a profit-maximising, competitive firm rises and all other prices stay constant, then the firm’s output cannot fall. True/False
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...
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