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A firm with the production function Q(K,L) = 2LVKL is currently utilizing 6 units of labour...
SM 3. A firm uses capital K, labour L, and land T to produce units of a commodity, where Q=K2/3+ 1/2+/3 Suppose that the firm is paid a positive price p for each unit it produces, and that the positive prices it pays per unit of capital, labour, and land are r, w, and q, respectively. (a) Express the firm's profits as a function of (K,L,T). Then, find the values of K, L, and T, as functions of the four...
For a firm, assume the following: Production function is: Q = min(L, 3 K) Wage rate = 25 Rent = 80 Cost Outlay = 5,000 Part 1: What is the optimal amount of labour hired? Part 2: What is the optimal amount of capital employed? Part 3: What is the optimal amount of output produced?
A firm produces output according to the production function: Q = F(K,L) = 2K + 2L. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $65 per hour and the rental rate on capital is $35 per hour, what is the cost-minimizing input mix for producing 4 units of output? Capital: Labor:
For a firm, assume the following: Production function is: Q = min(L, 4 K) Wage rate = 30 Rent = 100 Cost Outlay = 9,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired? Part 2: What is the optimal amount of capital employed? Part 3: What is the optimal amount of output produced?
Assume the following firm: Production function is: Q = min(L, 3 K) Wage rate = 45 Rent = 60 Cost Outlay = 5,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired? ____________ Part 2: What is the optimal amount of capital employed? ____________ Part 3: What is the optimal amount of output produced? ____________
For a firm, assume the following: Production function is: Q = min(L, 2 K) Wage rate = 50 Rent = 90 Cost Outlay = 4,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired?Number Part 2: What is the optimal amount of capital employed? Number Part 3: What is the optimal amount of output produced?
12. Consider a firm with production function f(K,L) = K+L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for producing outputs greater than or equal to 10 units when w = 1 and r = 1. (b) Suppose wage goes up to w' = 2 while the price of capital remains same at r = 1. Find the new short-run cost function for producing output greater than or equal...
18. value: 7.00 points Suppose that a firm with the production function Q = min(5K, 5L) is currently using 6 units of capital and 5 units of labour. What are the marginal products of K and L in this case? K=
Suppose the production function for a firm is given by: q-2L *4K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSx) (Round to the nearest fwo decimal places if necessary) Answer Suppose the production function for a firm is given by: q-4L K 25 If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal...
Suppose the production function for a firm is given by: q=4L^0.75*K^0.25. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK).