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![2) Given? W = 20, r=40; T = 200 a) . Isonor funtion :w.Ltr.k= ł ov, 20L+ 90K = 200 or L + k = 1 [in intercept forms] B) Retat](http://img.homeworklib.com/questions/aa3eef10-7559-11ea-b6ca-772eb888bbb6.png?x-oss-process=image/resize,w_560)
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1. A firm operates in the long run. Its long-run production function is given as: Q...
2. Suppose that the price of labor is $20 (w = $20) and the price of capital is $40 (r = $40). A firm is able to pa...
2. Suppose that the price of labor is $20 (w = $20) and the price of capital is $40 (r = $40). A firm is able to pay the total cost of $200 to employ labor (L) and capital (K). The firm's production function is given as Q = LK, where Q is units of output, L is units of labor, and K is units of capital. (a) Construct the firm's isocost function and graph it on a two-dimensional plane....
A firm has the following production function Q= √KL Where Q is output per week and...
A firm has the following production function Q= √KL Where Q is output per week and K and L are units of capital and labor per week. If rental price of capital v= 100 per week and the wages w = 400 per week obtain the quantity of K and L that min the cost for Q = 10.
The production function of the Auto parts firm is given by Q-5L-L, where Q is the...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
A firm’s production technology is given by the production function q = 0.25 LK where L...
A firm’s production technology is given by the production function q = 0.25 LK where L represents labor hours, K machine hours and q the amount of output. The market wage and rental rates are, w= $16 and r = $256. The firm is operating in the long run where it can adjust both inputs. (a) Suppose that the firm currently is using ten labor hours for each machine hour. Is it minimizing its long run total cost? If so...
The production function for widgets takes the following form: q = 4L + 6K a. What...
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...
The production function of a firm is: Q=10L^0.6 K^0.4 where the price of labor is QR...
The production function of a firm is: Q=10L^0.6 K^0.4 where the price of labor is QR 10 (w = 10) and the rent of capital is QR 20 (r = 20) and the estimated market demand is 1000 toys (Q = 1000). Find the amount of labor (L) and capital (K) that the firm should employ and rent and find the total cost.
7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to...
7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to produce Q=100 units. Later the price of labor w goes up to $4. Find the optimal input combinations for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices.
Question 7 rding to the production function: uses labor and machines to produce output according to...
Question 7 rding to the production function: uses labor and machines to produce output according to the where Lis ALK) = 41/212, ere is the number of units of labor used and K is the amount of capita or is $40 per unit and the cost of employing capital is $10 per unit. mount of capital employed. The cost (0): On the graph below, draw an isocost line for this firm that includes combin capital and labor that cost $400...
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital...
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital (K). The firm's production function is Q f(L, K) = min{L, K}}. The per-unit price of labor is w = 1 and the per-unit price of capital is r = 1. Recently, the government imposed a tax on Julia's firm: For each unit of labor that Julia employs, she must pay a tax of £t to the government. (a) Graph the Q unit of...
Derive the cost function associated with the production function in questions 2 is C(q) = 4...
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...
2. Suppose that the price of labor is $20 (w = $20) and the price of capital is $40 (r = $40). A firm is able to pay the total cost of $200 to employ labor (L) and capital (K). The firm's production function is given as Q = LK, where Q is units of output, L is units of labor, and K is units of capital. (a) Construct the firm's isocost function and graph it on a two-dimensional plane....
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to produce Q=100 units. Later the price of labor w goes up to $4. Find the optimal input combinations for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices.
Question 7 rding to the production function: uses labor and machines to produce output according to the where Lis ALK) = 41/212, ere is the number of units of labor used and K is the amount of capita or is $40 per unit and the cost of employing capital is $10 per unit. mount of capital employed. The cost (0): On the graph below, draw an isocost line for this firm that includes combin capital and labor that cost $400...
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital (K). The firm's production function is Q f(L, K) = min{L, K}}. The per-unit price of labor is w = 1 and the per-unit price of capital is r = 1. Recently, the government imposed a tax on Julia's firm: For each unit of labor that Julia employs, she must pay a tax of £t to the government. (a) Graph the Q unit of...
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...
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