question 4 a and b please 4. Consider the production function y = LK/10, where L...
5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK . In the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental rate of capital is r=$1, and the wage rate of labor is w=$4. a. Derive the firm's short-run total cost curve. What is the short-run average total cost? What is the short-run average variable cost? b. Find the short-run marginal cost function. What are the total...
Please solve and show full work for a rating. Thank you. Plastic bags are great 2) The production of plastic bags is given by the production function q K is capital and L is labor. f(LK) s, where Short Run Production a. ) Find the expressions for the Marginal Product of Labor (MP) and Average Product of Labor (APL) in the Short Run, when K is fixed at 400. i) Derive L() in the Short Run, again with K fixed...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is y 10 . Suppose the factor prices are wL = 10 and wk = 100. (a) Graph the isoquants for y equal to 1,2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer,...
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
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.
3. Consider the linear production function y a Br2 where aE1 and with prices w, and w respectively are inputs (a) Derive the conditional factor demands for and . (b) Derive the cost function (c) Derive the short-run cost function when input 2 is fixed at (d) Derive both short- and long-run average cost functions.
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
3. Consider the linear production function y = ax + 3x2 where 21 and 22 are inputs with prices w; and w, respectively. (a) Derive the conditional factor demands for C and 22. (b) Derive the cost function (c) Derive the short-run cost function when input 2 is fixed at 22. (d) Derive both short and long-run average cost functions.
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a S sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check