Question 7 You produce shoes (Q) with labor (L) and capital (K). The production process is...
Question 7 You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L - 20L2 + 600K - 10K2 The cost of labor is $20 and the cost of capital is $30. You have a budget of $550. How many units of capital(K) should you rent/buy? Enter as a value.
The production process used 2 inputs: Labor (L) and Capital (K). The production function is Q = min{2L,K} , the price of L is $3 and the price of K is $6. What's the minimum cost that the firm has to pay to produce 8 units?___
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firms Production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm’s Total Cost function? TC(Q) = ____________________________ b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm’s isoquant for...
Suppose a production function is given by F(K, L) = KL2 ; the price of capital is $10 and the price of labor is $15. What combination of labor and capital minimizes the cost of producing any output? To produce a given level of output q, how many units of L and K are needed? Express the optimal inputs choices L(q) and K(q) as functions of the level of output q
The production of tennis shoes takes the following form: Q = 3(KL)1/3 price of capital (K)= $120 per day price of labor = $30 per day If the price of a tennis shoes is $50 per pair, what is the optimum combination of K and L that maximizes profit or minimizes loss?
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q)= b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm's...
5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2 and w $3, what is the firm's cost function? 2q 5q 2K a. b. C. d. 3L 3L+ 2K e. 5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2...
Assume a firm' production function is Q = 3K +L • In this case, inputs (K and L) are perfect substitutes. Can you give a real example where this production function works? Assume price of capital is r = 5, and price of labor is w = 1 How many units of capital and labor is need to produce Q=60 in cheapest way? O Show your logic using cost minimization condition, and Analyze it graphically
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm’s production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. What is the Total cost function?
1. Consider the following production function: Q = f(K, L) = (K^1/2) (L^1/2) a) Place capital on the vertical axis and labor on the horizontal axis. Determine the marginal rate of technical substitution. b) Suppose that the price of capital is $10, 000, and the price of labor is $10, 000. What is the ratio of capital to labor that allows the firm to produce any given quantity of output as cheaply as possible. c) Suppose that the price of...