8. For which of the following production functions could the long-run expansion path be vertical assuming...
For which of the following production functions could the long-run expansion path be vertical, assuming w = r? (Assume, per usual, that K is on the y-axis and L is on the x-axis.) a. ? = √? + 2? b. ? = 2? + √? c. ? = min (?, 2?) d. ? = 2? + ? e. ? = ?^ 1/4 * ?^ 3/4
1. (20) What are the cost-minimizing values of L and K for the following functions? Note that w = r = 2 and the production target is 50. (a) (5) q = f(L,K) = 2LK (b) (5) q = f(L,K) = 2L + K (c) (5) q= f(L,K) = min{2L, K} (d) (5) q = f(L,K) = 2L + VK
1. Graph the short-run total product curves for each of the following production functions if K is fixed at Ko 4 (a) Q = F(K, L) = 2K + 3L. (b) Q = F(K, L) = K2L2. (c) In the long run, are the above two production functions characterized by constant returns to scale, increasing returns to scale, or decreasing returns to scale?
Given the following long run production and cost functions: q=LPK1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? Clearly type out your answer to parts (A), (B) and (C) in the space provided. Retain all of your handwritten work for this question to be uploaded separately after you have completed the...
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm is given by q Lo.5 K0,5. The prices of labor and capital are given by w 2 and r 5, respectively. a) Write the firm's cost minimization problem formally. b) What returns to scale does the production function exhibit? Why? c) What is the optimal capital to labor ratio? Show your work. d) What is the slope of the expansion path and what is...
Given the following long run production and cost functions: q=L3K1/4 C = 12L +4K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change?
Briefly show whether the following production functions exhibit increasing, decreasing, or constant returns to scale: Y = K2/3 + L2/3 Y = min {2L+K, 2K+L} Y = 20*L1/5*K4/5
Given the following long run production and cost functions: 4 = 1/3K2 C = 15L + 3K (A) What input has diminishing marginal returns? (B) Does this production function display increasing, decreasing or constant returns to scale? (C) What is this firm's expansion path assuming input prices do not change? HTML Editora
Determine the long-run total, average and marginal cost functions of the firms having the production functions and facing the input prices given below: a. ?=f(K,L)=√K+2√L,PK=1,PL=2 b. Q=f(K,L)=K+L,PK=2,PL=1 c. Q=f(K,L)=K1/2L1/2,PK=2,PL=2