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QUESTION 8 (13 points) A rice processing company estimates that it's production function is given by:...
Suppose a Cobb-Douglas Production function is given by the following: where L is units of labor, ...
Suppose a Cobb-Douglas Production function is given by the following: where L is units of labor, K is units of capital, and P(L, K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $300 and each unit of capital costs $1,200. Further suppose a total of $120,000 is available to be invested in labor and capital (combined). A) How many units of labor and capital should be "purchased" to maximize production subject...
It is known that the production function of a company is ? = 2?^0.6 × ?^0.4...
It is known that the production function of a company is ? = 2?^0.6 × ?^0.4 , where K is capital and L is labor. It is known that the company has funds to purchase as much raw material $ 6000. It is known that wage (w) is 3 and capital price per unit (v) is 2. a. Determine the isocost function. Explain the meaning of isocost in economics! b. Prove that there is a diminishing marginal product! c. With...
Question 1 The quantity, q, of a product manufactured depends on the number of workers, W,...
Question 1 The quantity, q, of a product manufactured depends on the number of workers, W, and the amount of capital invested, K, and is given by the Cobb-Douglas function q = 6WºKT. In addition, labor costs are $11 per worker and capital costs are $22 per unit and the budget is $3300. (a) What are the optimum number of workers and the optimum number of units of capital? Enter the exact answers. W = K = (b) Recompute the...
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of...
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. what is the least cost input combination for producing 675 units of output?
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of...
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. assuming no fixed cost, what is the firm's total cost of production if it uses least-cost input combination to produce 675 units of output?
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...
Question Help The production function for the personal computers of DISK, Inc, is given by q-10K05105...
Question Help The production function for the personal computers of DISK, Inc, is given by q-10K05105 where q is the number of computers produced per day, K is hours of machine time, and L is hours of labor input DISK's competitor, FLOPPY, Inc, is using the production function q 10K06 0.4 If both companies use the same amounts of capital and labor and K L, which firm will generate more output? The output of
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function...
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function of the form: q = 5LK+K+L where q is units per day, L is units of labor input and K is units of capital output. The marginal product of the two inputs are: MPL = 5K+1, MPK = 5L +1. Price per unit of labor: w= $15, price per unit of capital: v= $15. Both labor and capital are variable. a. Write down the...
[Short-Run Production] Suppose that a firm is producing in the short run with output given by:...
[Short-Run Production] Suppose that a firm is producing in the short run with output given by: Q = 200.5L – 2.5L2, The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $50 per unit. Find the firm’s optimal use of labor and associated level of output. (For extra practice, what is the firm’s associated profit?) I have already finished and went to check my work on Chegg and...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
Suppose a Cobb-Douglas Production function is given by the following: where L is units of labor, K is units of capital, and P(L, K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $300 and each unit of capital costs $1,200. Further suppose a total of $120,000 is available to be invested in labor and capital (combined). A) How many units of labor and capital should be "purchased" to maximize production subject...
Question 1 The quantity, q, of a product manufactured depends on the number of workers, W, and the amount of capital invested, K, and is given by the Cobb-Douglas function q = 6WºKT. In addition, labor costs are $11 per worker and capital costs are $22 per unit and the budget is $3300. (a) What are the optimum number of workers and the optimum number of units of capital? Enter the exact answers. W = K = (b) Recompute 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...
Question Help The production function for the personal computers of DISK, Inc, is given by q-10K05105 where q is the number of computers produced per day, K is hours of machine time, and L is hours of labor input DISK's competitor, FLOPPY, Inc, is using the production function q 10K06 0.4 If both companies use the same amounts of capital and labor and K L, which firm will generate more output? The output of
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function of the form: q = 5LK+K+L where q is units per day, L is units of labor input and K is units of capital output. The marginal product of the two inputs are: MPL = 5K+1, MPK = 5L +1. Price per unit of labor: w= $15, price per unit of capital: v= $15. Both labor and capital are variable. a. Write down the...
Q1 [30 points] Show in a diagram using isoquants that a production function can have diminishing marginal return to a factor and constant returns to scale? With the help of a diagram explain the concepts of "isoquant", "diminishing marginal return to a factor", and "constant returns to scale". What are the similarities and differences between indifference curves and isoquants. Q2 [30 points Assume that a firm has a fixed-proportions production function, in which one unit of output is produced using...
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