ZuoTi.Pro
Question

A firm has a short run cost function of C=10+2q+q2 with capital fixed at K. What...

A firm has a short run cost function of C=10+2q+q2 with capital fixed at K.

What is the firm's average product of labor if it produces 6 units and labor wage is $8 per unit. How many units of labor must be used in the short run if it is currently producing 6 units.

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

Homework Answers

Answer #1

the total cost funchon , c=10+ 2aut q? where (Fixed cost) FC = 10 (Variable Cost) (Vc) = 2a + q 2 І) Но етиор Qua hФn (opitalMe know that variable cost is the expenditure on labor Cost of 1 unit of labor is $8 . Hence number of labor employed a L = VWe know, Average product _ Total Output No cf labor

0 0
Add a comment
Know the answer?
Add Answer to:
A firm has a short run cost function of C=10+2q+q2 with capital fixed at K. What...
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

  • A firm uses labor (L) and capital (K) as inputs, and has a short run cost function C=15+ 10q+ q2. Capital is fixed at K̅

    A firm uses labor (L) and capital (K) as inputs, and has a short run cost function C=15+ 10q+ q2. Capital is fixed at K̅ a. Give the formula for the firm's marginal cost function. Any method of deriving the marginal cost function is acceptable. (Hint: When calculating MC, you can assume that increases by a very, very small amount, so that q2 = q1 + ε ≈ q and q1 + q2 ≈ 2q.) b. Give the formula for the firm's...

  • A firm produces output Q by using capital K and labor L in fixed proportions, i.e....

    A firm produces output Q by using capital K and labor L in fixed proportions, i.e. Q = F (K ,L ) = min {K, L/3}. The price of a unit of labor is w = 6, the price of a unit of capital is r = 2 and the price of output is p = 20. a) Draw the isoquant for Q = 8. b) Find the marginal product of labor. Suppose that (in part c and d) the...

  • 5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK...

    5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK . In the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental rate of capital is r=$1, and the wage rate of labor is w=$4. a. Derive the firm's short-run total cost curve. What is the short-run average total cost? What is the short-run average variable cost? b. Find the short-run marginal cost function. What are the total...

  • [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...

  • In the short-run, capital is fixed at K. Find the short-run average total cost function when...

    In the short-run, capital is fixed at K. Find the short-run average total cost function when a firm's production function is Q(L, K) 4. 1/2)2 L172-K 1 2 (r-w)K

  • A firm producing hockey sticks has a production function given by . In the short run,...

    A firm producing hockey sticks has a production function given by . In the short run, the firm's amount of capital equipment is fixed at K = 100. The rental rate for K is $1 and the wage rate for L is $4. a. What is the firm's fixed rate cost? b. What is the firm's total cost function, TC(Q)? 2LK

  • 12. Consider a firm with production function f(K,L) = K+L. (a) Suppose that capital level is currently fixed at K =...

    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...

  • In the short-run, we assume that capital is a fixed input and labor is a variable...

    In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase output only by increasing the amount of labor it uses. In the short-run, the firm's production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of units of capital. Production Output or Marginal Product Product Labor Average Product Given a specific equation for production: 0 249 9 =...

  • 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,...

  • In the short run, a perfectly competitive firm produces output using capital services (a fixed input)...

    In the short run, a perfectly competitive firm produces output using capital services (a fixed input) and labour services (a variable input). At its profit-maximizing level of output, the marginal product of labour is equal to the average product of labour. a. What is the relationship between this firm's average variable cost and its marginal cost? O Average variable cost is higher than marginal cost O Average variable cost equals marginal cost O Average variable cost is less than marginal...

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