Homework Answers
a) It is called an isoquant. Along this curve the output remains same at the given level
b) Slope = change in K / change in L = +1/-10 = -0.1
c) This slope is called marginal rate of technical substitution and it signifies the rate at which the firm is willing to substitute capital for labor or labor for capital
d) It indicates that for increasing the labor by 1 unit, the firm must give up 0.1 units of capital to produce the same output level
e) If this segment is considered, MRTS is 0.1. Hence the price ratio should be 0.1 so that MRTS = price ratio and the budget line becomes tangent to the isoquant resulting in minimizing cost.
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2. The curve Qe below shows all levels of Capital and Labor that can be combined...
could you just explain 2.c,d,e ? Thank you MRT Marginal rate of 2. The curve Q....
could you just explain 2.c,d,e ? Thank you
MRT Marginal rate of 2. The curve Q. below shows all levels of capital and Labor that can be combined to produce the same quantity of output, Qo. Capital Input - lo AK = +1 Labor Input 90 100 AL = -10 a. (3%) What is the economic name for curve Q.? Isoquant . b. (3%) What is the slope along line Q. between the points (L-100, K=10) and (L=90, K=11)? .:40...
could you teach me how number 1 is solved? Assignment #4: Multiple Products, Inputs, and Cost...
could you teach me how number 1 is solved?
Assignment #4: Multiple Products, Inputs, and Cost Analysis 1. Bret Bluesinger grows highbush blueberries. He wants to get a price premium for fruit pollinated by local pollinators. Local pollinators require habitat. A university entomologist provides him with data for the relationship illustrated below. The crop output (V) is blueberries (in 30-pound boxes) while the Pollination output (Z) is a service (in 100's of flowers pollinated per hour). The percentage pairs below...
could you explain number 1 a~c for me? thank you so much Bret Bluesinger grows highbush blueberries. He wants to g...
could you explain number 1 a~c for me? thank you so much
Bret Bluesinger grows highbush blueberries. He wants to get a price premium for fruit pollinated by local pollinators. Local pollinators require habitat. A university entomologist provides him with data for the relationship illustrated below. The crop output (Y) is blueberries (in 30-pound boxes) while the Pollination output (2) is a service (in 100's of flowers pollinated per hour). The percentage pairs below first give the proportion of land...
Mom produces eyephones using capital(K) and labor(L). The wage rate is $15 per hour and the...
Mom produces eyephones using capital(K) and labor(L). The wage rate is $15 per hour and the user cost of capital is $10 per hour. The slope of an isocost line with L on the horizontal and K on the vertical axis is If Mom spends $90 to produce eyephones, two input combinations that lie on this isocost curve are (K= La ) and (K= LE
The following graph shows the isoquant representing the combinations of capital and labor needed to produce...
The following graph shows the isoquant representing the combinations of capital and labor needed to produce 10 left-handed can openers. Assume that diminishing marginal returns characterize the production function. (Hint: click a point on the graph to see its coordinates.) 500 450 400 360 300 LABOR (Workers) 260 + 200 160 + * 100 50 o 12 3 18 15 o 21 Using the information provided on the graph, complete the following table with the changes in capital and labor...
2. The price of labor is $45 per unit. Use the isocost curve below, to answer...
2. The price of labor is $45 per unit. Use the isocost curve below, to answer these questions: (4 Pts) 160 120 80 40 500 1,000 1,500 Labor (L) The equation for the isocost curve shown in the figure is K- capital is S a. The price of per unit. The total cost associated with this isocost curve is S b. Input combination A is units of input combination A is S units of capital. The total cost of Verify...
The production engineers at Impact Industries have derived the optimal combinations of labor and capital. These...
The production engineers at Impact Industries have derived the optimal combinations of labor and capital. These are the only two inputs used by Impact. The following chart shows the combinations of labor and capital for three levels of output. Q is the output level. L* is the optimal amount of labor. K* is the optimal amount of capital. The price of labor is $90 per unit. The price of capital is $15 per unit. Q L* K* 120 5 20...
1. There is a furniture manufacturer using labor (L) and capital (K) to produce tables. Its production function is given by q= 10L^.75 K^.40. It pays a wage of $5 per hour and rents capital at a rate...
1. There is a furniture manufacturer using labor (L) and capital
(K) to produce tables. Its production function is given by q=
10L^.75 K^.40. It pays a
wage of $5 per hour and rents capital at a rate of $15. The firm
wants to find the cost-minimizing bundle of inputs to produce
10,000 tables. Assume K is on the y-axis in what
follows.
Write out the firm’s cost function.
Calculate the firm’s isocost equation.
What is the slope of the...
A firm is required to produce 100 units of output using quantities of labor and capital...
A firm is required to produce 100 units of output using quantities of labor and capital (L, K) = (7, 6). For each of the following production functions, state whether it is possible to produce the required output with the given input combination. If it is possible, state whether the input combination is technically efficient or inefficient: (a) Q = 7L + 8K (b) Q = 20√ KL (c) Q = min{16L, 20K} (d) Q = 2(KL + L +...
The production process used 2 inputs: Labor (L) and Capital (K). The production function is Q...
The production process used 2 inputs: Labor (L) and Capital (K). The production function is Q = min{2L,K} , the price of L is $3 and the price of K is $6. What's the minimum cost that the firm has to pay to produce 8 units?___
could you just explain 2.c,d,e ? Thank you
MRT Marginal rate of 2. The curve Q. below shows all levels of capital and Labor that can be combined to produce the same quantity of output, Qo. Capital Input - lo AK = +1 Labor Input 90 100 AL = -10 a. (3%) What is the economic name for curve Q.? Isoquant . b. (3%) What is the slope along line Q. between the points (L-100, K=10) and (L=90, K=11)? .:40...
could you teach me how number 1 is solved?
Assignment #4: Multiple Products, Inputs, and Cost Analysis 1. Bret Bluesinger grows highbush blueberries. He wants to get a price premium for fruit pollinated by local pollinators. Local pollinators require habitat. A university entomologist provides him with data for the relationship illustrated below. The crop output (V) is blueberries (in 30-pound boxes) while the Pollination output (Z) is a service (in 100's of flowers pollinated per hour). The percentage pairs below...
could you explain number 1 a~c for me? thank you so much
Bret Bluesinger grows highbush blueberries. He wants to get a price premium for fruit pollinated by local pollinators. Local pollinators require habitat. A university entomologist provides him with data for the relationship illustrated below. The crop output (Y) is blueberries (in 30-pound boxes) while the Pollination output (2) is a service (in 100's of flowers pollinated per hour). The percentage pairs below first give the proportion of land...
Mom produces eyephones using capital(K) and labor(L). The wage rate is $15 per hour and the user cost of capital is $10 per hour. The slope of an isocost line with L on the horizontal and K on the vertical axis is If Mom spends $90 to produce eyephones, two input combinations that lie on this isocost curve are (K= La ) and (K= LE
The following graph shows the isoquant representing the combinations of capital and labor needed to produce 10 left-handed can openers. Assume that diminishing marginal returns characterize the production function. (Hint: click a point on the graph to see its coordinates.) 500 450 400 360 300 LABOR (Workers) 260 + 200 160 + * 100 50 o 12 3 18 15 o 21 Using the information provided on the graph, complete the following table with the changes in capital and labor...
2. The price of labor is $45 per unit. Use the isocost curve below, to answer these questions: (4 Pts) 160 120 80 40 500 1,000 1,500 Labor (L) The equation for the isocost curve shown in the figure is K- capital is S a. The price of per unit. The total cost associated with this isocost curve is S b. Input combination A is units of input combination A is S units of capital. The total cost of Verify...
1. There is a furniture manufacturer using labor (L) and capital
(K) to produce tables. Its production function is given by q=
10L^.75 K^.40. It pays a
wage of $5 per hour and rents capital at a rate of $15. The firm
wants to find the cost-minimizing bundle of inputs to produce
10,000 tables. Assume K is on the y-axis in what
follows.
Write out the firm’s cost function.
Calculate the firm’s isocost equation.
What is the slope of the...
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