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![MRTS MPL - 2 - mp MRTS - Be cause MRTS is greater than and so from would only employ no capital w labor q2lfk 50- alto 2= 25]](http://img.homeworklib.com/questions/f1a63670-786f-11ea-8d17-95e3d28a416a.png?x-oss-process=image/resize,w_560)
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1. (20) What are the cost-minimizing values of L and K for the following functions? Note...
8. For which of the following production functions could the long-run expansion path be vertical assuming...
8. 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. Q = V1 + 2K b. Q = 2L + VK c. Q = min (L, 2K) d. Q = 2L+K e. Q = /1/4K3/4
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values...
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at R = 10,000 and a =. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K, L) = KLi. Let...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm e...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at K = 10,000 and a = 1. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K,L)=KLI. Let w...
- 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...
A. L=25; K=16 B. L=40; K=10 C. L=16; K=25 D. L=10; K=40 E. L=20; K=20 =...
A. L=25; K=16
B. L=40; K=10
C. L=16; K=25
D. L=10; K=40
E. L=20; K=20
= VE Lulu owns a firm that produces leggings. The production function is given by Q=2VKVL, so that MPL K and MPK = Q is Lulu's VL VK output, K is capital, L is labor, and MP is the marginal product. The wage (w)rate per worker (L) is $40 per day and rental rate (r) per unit of capital (K) is $10 per day. How...
Consider the Leontief production function F(KL) = min {K,L], where capital K and labor L have...
Consider the Leontief production function F(KL) = min {K,L], where capital K and labor L have respective positive input prices r and w. (a) Why is it that the cost-minimizing firm sets K 5. L? (b) What is the cost function? (c) How would your answer to part (b) change, if at all, if rw 0? Explain.
1. Below are production functions that turn capital (K) and labor (L) into output. For each...
1. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (KL) by a factor of a, where a > 1: (3 points each) (a) F(K.L) = (b) F(KL)= min (4K, 2L + 20 (c) F(K,L) = 5K+ 10L
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K,...
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K, L) = min{įK, L}, and q = = f(K, L) = K (1/4) L (3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
4. Below are production functions that turn capital (K) and labor (L) into output. For each...
4. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (K.L) by a factor of a, where a > 1: (4 points each) (a) F(K,L) =KİL (b) F(K,L) = min 4K, 2L] + 20 (c) F(K,L) = 4K +3L 5. For this problem you...
8. 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. Q = V1 + 2K b. Q = 2L + VK c. Q = min (L, 2K) d. Q = 2L+K e. Q = /1/4K3/4
9. Suppose the firm's production function is given by f(K,L) min (K",L" (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at R = 10,000 and a =. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K, L) = KLi. Let...
9. Suppose the firm's production function is given by f(K,L) = min (Kº,L"} (a) For what values of a will the firm exhibit decreasing returns to scale? Constant returns to scale? Increasing returns to scale? (b) Derive the long-run cost function and the optimal input choices. (c) Suppose the capital is fixed at K = 10,000 and a = 1. Assuming that the firm wants to produce less than 100 units, derive 10. Consider the production function: f(K,L)=KLI. Let w...
- 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...
A. L=25; K=16
B. L=40; K=10
C. L=16; K=25
D. L=10; K=40
E. L=20; K=20
= VE Lulu owns a firm that produces leggings. The production function is given by Q=2VKVL, so that MPL K and MPK = Q is Lulu's VL VK output, K is capital, L is labor, and MP is the marginal product. The wage (w)rate per worker (L) is $40 per day and rental rate (r) per unit of capital (K) is $10 per day. How...
Consider the Leontief production function F(KL) = min {K,L], where capital K and labor L have respective positive input prices r and w. (a) Why is it that the cost-minimizing firm sets K 5. L? (b) What is the cost function? (c) How would your answer to part (b) change, if at all, if rw 0? Explain.
1. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (KL) by a factor of a, where a > 1: (3 points each) (a) F(K.L) = (b) F(KL)= min (4K, 2L + 20 (c) F(K,L) = 5K+ 10L
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K, L) = min{įK, L}, and q = = f(K, L) = K (1/4) L (3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
4. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (K.L) by a factor of a, where a > 1: (4 points each) (a) F(K,L) =KİL (b) F(K,L) = min 4K, 2L] + 20 (c) F(K,L) = 4K +3L 5. For this problem you...
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