5. Prove that the following function is a cost function and derive a possible production 1/2,1/2...
Can you please solve this step by step and understandable, I couldn't understand the previous solution and handwriting so I'm posting it again 5. Prove that the following function is a cost function and derive a possible production 1/2,1/2 function. C(M, r, q) = q(w+1/21.12 +1.)
8. For the following cost functions derive the corresponding profit functions and production functions. 1/2 1/2,1/2
2. Assume the production function is y 5-30, and the price of r is w 1 (a) Derive the firm's total cost curve C(y), average cost curve AC(y), and marginal cost curve MC(y). (b) Assume that p> min AC(y), derive the firm's supply curve y'(w,p)?
Derive the cost function associated with the production function in questions 2 is C(q) = 4 + 2q and in questions 3 is C=wL+rK=1*8+2*4=16. The cost function is of the general form C(Q) = xQ. What is the value of x? 2. The inverse market demand function is given by P()-20 q. Would consumers prefer to face a monopolist in this market with a cost function given by C(g)4+ 2q, or a perfectly competitive firm with a cost function given...
1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
5. Prove that when the production function is homogeneous of degree one, it may be as f(x) 2MP(x)x where MPi(x) is the marginal product of input i. Hint use Euler's Theorem. 6. Derive the cost function for the linear technology y f(xix2)-axi+bx 7. Given the production function fxi)aIxa In(x), derive the firm's supply function assuming an interior solution, assuming that a>0 and a 0. 8. Consider a duopoly facing an industry demand function, p-a-bQ, where Q tg respective cost functions...
2. Assume the production function is y 5-30, and the price of r is w 1 (a) Derive the firm's total cost curve C(y), average cost curve AC(y), and marginal cost curve MC(y) (b) Assume that p> min AC(y), derive the firm's supply curve y(w,p)?
I've asked the same question before but the answer is wrong so please post right answer this time. Please answer if you know the subject well. Thank you. Question: Prove that the following function is a cost function and derive a possible production function. The cost function is : C(w, r,q) = q(w+ w1/2r1/2+ r)
The production function for widgets takes the following form: q = 4L + 6K a. What is the least cost combination of L and K that the firm should employ to produce 48 widgets when w = 2 and r = 4. b. Suppose the price of labor increases to w = 4 but the rental rate of capital is unchanged. If the firm still wants to produce 48 widgets at the lowest cost possible, should it alter its input...
Labor Economics 1. Derive the labor demand functions that are associated with the two production functions given below. The level of output is denoted by q. The two inputs are labor (h) and capital (k). You should derive the function that relates the level of labor utilized at each possible output level, q 〉 0, We will assume that the price per unit of capital is r 1, that the wage rate is w 2 1. q- min[2h, 3k) 2....