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3. A firm's production function is given by y z1214. Input prices are wi and w2...
5. Let the firm's production function be given by y 1+2. Note that the inputs r1...
5. Let the firm's production function be given by y 1+2. Note that the inputs r1 and 2 are perfect substitutes in this production process. Suppose wi 2 and w2 1 (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price of the second input, w2,...
TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input...
TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input quantities that yield the same level of output. Higher isoquant: higher level of output Marginal Rate of Technical Substitution: MRTS is the slope of the isoquant at any input combination. It tells us the rate at which we must increase the qty of input 2 per unit decrease in qty of input 1. MRTS diminishes as we move down the isoquant from left to...
5. Let the firm's production function be given by y = x1 + x2. Note that the inputs 21 and 2 are perfect substitu...
5. Let the firm's production function be given by y = x1 + x2. Note that the inputs 21 and 2 are perfect substitutes in this production process. Suppose w = 2 and w2 = 1. (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price...
3. A firm has the production function y 5Z1 + Z2- Input prices are w,-9 and...
3. A firm has the production function y 5Z1 + Z2- Input prices are w,-9 and W2 = 3 a) What is the cost minimizing input bundle? b) What is the minimum cost to produce 100 units of output?
Consider a firm with the cost function c(y, w1, w2) = y2(w1 + w2), where wi denotes the price of ...
Consider a firm with the cost function c(y, w1, w2) = y2(w1 + w2), where wi denotes the price of inputi, i = 1, 2. Let p denote the output price. Derive the output supply function y(p, w1, w2), and the input demand functions xi(p, w1, w2), i = 1, 2
3. Consider the linear production function y = axı + B.x2 where xı and X2 are...
3. Consider the linear production function y = axı + B.x2 where xı and X2 are inputs with prices wi and W2 respectively. (a) Derive the conditional factor demands for rı and 22. (b) Derive the cost function. (c) Derive the short-run cost function when input 2 is fixed at 72. (d) Derive both short- and long-run average cost functions.
The firm's production function is given as f(LK) = 4L·5K0.5 and input prices are w =...
The firm's production function is given as f(LK) = 4L·5K0.5 and input prices are w = 4 and r = 16. In the short-run, the level of capital is fixed at K = 2 What is the firm's short-run marginal cost function? Wählen Sie eine Antwort: O a. 0.25q 32/q O b. 0.125q O c. 4 + 32/q O d. 0.25q
please show all work, thanks! Problems 1 a) A firm has the production function y =...
please show all work, thanks!
Problems 1 a) A firm has the production function y = 22212 and faces input prices W1 and w2. Derive the conditional input demand functions for both inputs. b) If W, = $5 and W2 = $10, what is the minimum cost of producing 27 units of output?
5. Let the firm's production function be given by y = + x2. Note that the...
5. Let the firm's production function be given by y = + x2. Note that the inputs 2 and 2 are perfect substitutes in this production process. Suppose w = 2 and we = 1. (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price of...
A firm has the production function y= f(x1,x2)= 0.25x11/2 x21/2 . Input prices are w1=$4 and w2=...
A firm has the production function y= f(x1,x2)= 0.25x11/2 x21/2 . Input prices are w1=$4 and w2= $16 a) Use the technical rate of substitution, the input price rate, and the production function to compute the conditionial input demand fucntion x1(y) and x2(y). b) Compute the firm's long run cost function c(y).
5. Let the firm's production function be given by y 1+2. Note that the inputs r1 and 2 are perfect substitutes in this production process. Suppose wi 2 and w2 1 (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price of the second input, w2,...
TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input quantities that yield the same level of output. Higher isoquant: higher level of output Marginal Rate of Technical Substitution: MRTS is the slope of the isoquant at any input combination. It tells us the rate at which we must increase the qty of input 2 per unit decrease in qty of input 1. MRTS diminishes as we move down the isoquant from left to...
5. Let the firm's production function be given by y = x1 + x2. Note that the inputs 21 and 2 are perfect substitutes in this production process. Suppose w = 2 and w2 = 1. (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price...
3. A firm has the production function y 5Z1 + Z2- Input prices are w,-9 and W2 = 3 a) What is the cost minimizing input bundle? b) What is the minimum cost to produce 100 units of output?
3. Consider the linear production function y = axı + B.x2 where xı and X2 are inputs with prices wi and W2 respectively. (a) Derive the conditional factor demands for rı and 22. (b) Derive the cost function. (c) Derive the short-run cost function when input 2 is fixed at 72. (d) Derive both short- and long-run average cost functions.
The firm's production function is given as f(LK) = 4L·5K0.5 and input prices are w = 4 and r = 16. In the short-run, the level of capital is fixed at K = 2 What is the firm's short-run marginal cost function? Wählen Sie eine Antwort: O a. 0.25q 32/q O b. 0.125q O c. 4 + 32/q O d. 0.25q
please show all work, thanks!
Problems 1 a) A firm has the production function y = 22212 and faces input prices W1 and w2. Derive the conditional input demand functions for both inputs. b) If W, = $5 and W2 = $10, what is the minimum cost of producing 27 units of output?
5. Let the firm's production function be given by y = + x2. Note that the inputs 2 and 2 are perfect substitutes in this production process. Suppose w = 2 and we = 1. (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price of...
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