Homework Answers
(c)
Economic term for the slope of isoquant is called Marginal rate of Technical Substitution (MRTS). From shape of isoquant, it is seen that MRTS is diminishing.
(d)
Meaning of this slope is that, in order to use 1 more unit of labor in production process, 0.1 unit of capital has to be given up.
(e)
At lowest-cost combination of inputs, MRTS = - w/r
- 0.1 = - w/r
So,
w/r = 0.1
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could you just explain 2.c,d,e ? Thank you
MRT Marginal rate of 2. The curve Q....
2. The curve Qe below shows all levels of Capital and Labor that can be combined...
2. The curve Qe below shows all levels of Capital and Labor that can be combined to produce the same quantity of output, Qo. Capital Input 1 AK = +1 90 100 AL = -10 Labor Input a. (3%) What is the economic name for curve Qo? b. (3%) What is the slope along line Q. between the points (L=100, K=10) and (L=90, K=11)? C. (3%) What is the economic term for what this slope represents? d. (3%) What is...
(a) Consider the production function, q = 100K2L1.5 Calculate the marginal product of labor, MPL, and...
(a) Consider the production function, q = 100K2L1.5 Calculate the marginal product of labor, MPL, and the marginal product of capital,MPK. (c) Suppose that in the short run, the level of capital is fixed at K = 15. Write out the total product of labor curve. What is the marginal product of labor when L = 100? (d) Now consider two input combinations, (K = 5, L = 100) and (K = 20, L = 25). Which of the two...
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...
3. For each of the following production functions, graph a typical isoquant and determine whether the marginal rate of...
3. For each of the following production functions, graph a typical isoquant and determine whether the marginal rate of technical substitution of labor for capital (MRTS ) is diminishing, constant, increasing, or none of these. a. Q=LK b. Q=LVK c. Q=L*K13 d. Q = 3L +K e. Q = min{3L, K}
Show transcribed image text 3. For each of the following production functions, graph a typical isoquant and determine whether the marginal rate of technical substitution of labor for capital...
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...
5. A consumer buys two goods. If the prices of both goods fall by 10% and...
5. A consumer buys two goods. If the prices of both goods fall by 10% and the consumer's income falls by 20%, then a. the slope of the consumer's budget line will change. b. the consumer's budget line will shift out from the origin with the slope unchanged. c. the consumer's budget line will shift in toward the origin with the slope unchanged. d. the consumer's budget line will not change. 6. The figure at the right shows the isoquant...
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...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that the price of labor is $10 per unit and the price of capital is S1 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...
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
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = ½ L-1/2K1/2and MPK = ½ L1/2K-1/2 a) Suppose the price of labor is w = 18, and the price of capital is r = 2. Derive the firm’s total cost function. b) What is the firm’s marginal cost? c) For this problem, you will sketch the graph of the firm’s isoquant for Q...
2. The curve Qe below shows all levels of Capital and Labor that can be combined to produce the same quantity of output, Qo. Capital Input 1 AK = +1 90 100 AL = -10 Labor Input a. (3%) What is the economic name for curve Qo? b. (3%) What is the slope along line Q. between the points (L=100, K=10) and (L=90, K=11)? C. (3%) What is the economic term for what this slope represents? d. (3%) What is...
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...
3. For each of the following production functions, graph a typical isoquant and determine whether the marginal rate of technical substitution of labor for capital (MRTS ) is diminishing, constant, increasing, or none of these. a. Q=LK b. Q=LVK c. Q=L*K13 d. Q = 3L +K e. Q = min{3L, K}
Show transcribed image text 3. For each of the following production functions, graph a typical isoquant and determine whether the marginal rate of technical substitution of labor for capital...
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...
5. A consumer buys two goods. If the prices of both goods fall by 10% and the consumer's income falls by 20%, then a. the slope of the consumer's budget line will change. b. the consumer's budget line will shift out from the origin with the slope unchanged. c. the consumer's budget line will shift in toward the origin with the slope unchanged. d. the consumer's budget line will not change. 6. The figure at the right shows the isoquant...
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...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that the price of labor is $10 per unit and the price of capital is S1 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...
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
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