ZuoTi.Pro
Question

(20 points) A firms production function is q = 10.5K0.5, so that MPL = 0.5 0.5 40.5 20.5 and MPK = 0.5 0.5 10.5 k. Labor (L)

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
(20 points) A firm's production function is q = 10.5K0.5, so that MPL = 0.5 0.5...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose the firm's production function is given by q= F(K, L)= K2L with MPL=K2, MPK=2KL The...

    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.

  • A firm has the production function Q= 4LK. The marginal products are given by MPL =...

    A firm has the production function Q= 4LK. The marginal products are given by MPL = 4K and MPK= 4L. Suppose that the prices of labour and capital are given by w and r. Solve for the quantities of L and K that minimize the cost of producing Q units of output. Provide an expression for the long run total cost function. What returns to scale are exhibited by this production function? What economies of scale are exhibited? Show the...

  • 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...

  • (a) Consider the production function, q = 100K2L1.5 Calculate the marginal product of labor, MPL, and...

    (a) Consider the production function, q = 100K2L1.5 Calculate the marginal product of labor, MPL, and the marginal product of capital,MPK. (c) Suppose that in the short run, the level of capital is fixed at K = 15. Write out the total product of labor curve. What is the marginal product of labor when L = 100? (d) Now consider two input combinations, (K = 5, L = 100) and (K = 20, L = 25). Which of the two...

  • Suppose a firm's production function is Q = (KL)0.5. In the short run, this firm's capital stock ...

    Suppose a firm's production function is Q = (KL)0.5. In the short run, this firm's capital stock is fixed at 100. Calculate the firm's short run total cost curve if w = 5 and v = 5. It can be shown (using calculus) that this firm's short run marginal costs are .1Q. In order to maximize its profits, how much would the firm choose to produce if the market price of its output was $5, $10, or $20. For each...

  • Consider a production function of three inputs, labor, capital, and materials, given by Q= LKM

     Consider a production function of three inputs, labor, capital, and materials, given by Q= LKM. The marginal products associated with this production function are as follows: MPL = KM, MPk = LM, and MPM = LK. Let w = 5, r = 1, and m = 2, where m is the price per unit of materials. (a) Suppose that the firm is required to produce Q units of output. Show how the cost-minimizing quantity of labor depends on the quantity Q....

  • 2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit...

    2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit cost of labor is $20, capital is $80, and the product price is $12 per unit. The firm is currently producing 100 units of output and has determined that its cost minimizing quantities of labor and capital usage for this level of output is 20 and 5 respectively. The product price is $12 per unit. a. Determine the current total cost for 100 units,...

  • c. Using the firm's information shown below answer the followin Q = f(KL) = 10KL r...

    c. Using the firm's information shown below answer the followin Q = f(KL) = 10KL r = $40 W = $25 MPK = 10L MPL = 10K D. In the short run if the firm's capital is fixed at 25 units, how much will it cost them them to produce E. What will the firm do in the long run to minimize the cost of producing Q = 500? F. What are the firm's cost savings from the short-run (part...

  • #1 (2 points) What are the relationships that the aggregate production function repre- sents? As a...

    #1 (2 points) What are the relationships that the aggregate production function repre- sents? As a hypothetical example, describe each part of the function as if the variables represent data from the United States. #2 (2 points) In economics, what is the difference between the short run and long run? Is the aggregate production function a short run or long run model? #3 For this question use this aggregate production function: Y = AK1/4 [3/4 Part A) (2 points) Does...

  • Please help! Please show all work! 2. (21 points. Suppose a firm's production function is given...

    Please help! Please show all work! 2. (21 points. Suppose a firm's production function is given by Q = L 1/2*K12. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = 72 L 1/2K1/2and MPK = 12L12K-1/2 a) Suppose the price of labor is w=18, and the price of capital is r=2. Derive the firm's total cost function. b) What is the firm's marginal cost? c) For this problem, you will sketch the graph...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT