Q = 2KL - 0.2L2
Suppose K =8 , L=10, we get :
Q = 2(8)(10)- (0.2)(10)2
= 160- 20
Q = 140
The output is 140 sweaters per day. Hence, option(E) is correct.
Suppose a production function for a firm takes the following algebraic form: Q = 2KL -...
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labour. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labour is $5 per unit. What is the total cost of producing 80 units of output? Numeric Answer:
1. (12.5 points, 15 minutes) A manufacturing firm’s production function is Q = 2KL + 2K. For this production function, MPL = 2K and MPK = 2L + 2. Suppose that the price r of capital services is equal to 1, and let w denote price of the labour services. (a) If the firm is required to produce 10 units of output, for what values of w would a cost-minimizing firm use only capital? (b) Now assume that the rental...
Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor and Q is quantity. If capital is fixed at 4 in the short run. Suppose the cost of a unit of capital is $1 (r=1), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? OTC = 8+Q OTC = 8+0.5Q OTC = 4+ 0.5Q OTC = 4+Q Question 9 (1...
Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and Q is quantity. If capital is fixed at 4 in the short run. Suppose the cost of a unit of capital is $2 (r=2), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? A. TC=4+Q B. TC=4+0.5Q C. TC=8+Q D. TC=8+0.5Q
Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 2L, and the marginal product of labor is 2K. Assume that capital rents for $100 per unit per day, that labor can be hired for $200 per unit per day, and that the firm is minimizing costs. a. The firm will hire units of labor and - units of capital. b. What is the total cost of producing 60 units of output?...
Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and Q is quantity. If capital is fixed at 4 in the short run. What is the short run production function? A. Q=2L B. Q=8L C. Q=2K D. Q=8K
Suppose the firm's production function is given by q= F(K, L)= K2L with MPL=K2, MPK=2KL The price per unit of capital is 10 and the price per unit of labor is 5. Find the cost minimizing quantity of labor to produce 500,000 units of output. Please round to the closest integer.
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Question 7 (1 point) Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor and Q is quantity. If capital is fixed at 4 in the short run. What is the short run production function? Q=2L Q=8L Q=2K Q=8K
A plant’s production function is Q = 2KL + K . The price of labor services w is $ 4 and of capital services r is $ 5 per unit. a) In the short run, the plant’s capital is fixed at K = 9. Find the amount of labor it must employ to produce Q = 45 units of output. b) How much money is the firm sacrificing by not having the ability to choose its level of capital optimally?...