A short-run production function was estimated as Q=-0.00323 +0.1822 What is average product when it is...
Q5. Given the following short-run production function (x = variable input, Q = output): Q = 3x2 - 0.1x3 (a) Determine the marginal product function (MPx) and the average product function (APx ). (b) Find the value of x that maximizes Q. (c) Find the value of x for which MPx is maximum. (d) Find the value of x for which APx is maximum. (e) Determine the boundaries of the three...
Q6: CH 10 (15%) You are planning to estimate a short-run production function for your firm, and you have collected the following data on labor usage (L) and output (Q): Labor usage (L) Output (0) a. Please key in the data into MS Excel for regression analysis. Estimate your firm's short-run production function. Do the parameter estimates have the appropriate algebraic signs? Are they statistically significant at the 5 percent level? (Hint: Run the production function as Q = AL...
5. A firm produces widgets with production function: q-2vKL. In the short run, the firm's amount of capital is fixed at K = 100. The rental rate is v = 1 and the wage for L is w= 4. (a) Find the firm's short-run total cost curve (SRTC), short-run average cost curve (SRAC), and the short-run marginal cost (SMC) function. (b) Graph the firm's SAC and SMC using the following levels of production: q 25 and q= 100. (c) Find...
6. Consider the following production function: Q=L? -.5L (a) At what level of L is average product at its maximum? (b) Show that marginal product is equal to average product at the max- imum average product you determined in (a).
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. A firm has the production function q = ln L+12L^2- 10L^3. Find the average product of labor, the marginal product of labor. b. Consider the following short-run production function: q = 6L^22 – 1/3L^3. At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
2. Suppose a firm's short run production function is q = 600L-L. a. At what level of labor does the firm maximize output (total product)? What is the value of total product at this point? b. Does this frim experience increasing marginal product of labor. If so, over what range of output? What happens to total product over this range? c. Over what range of output does this firm experience diminishing marginal product of labor? What is the value of...
Suppose the production function for a firm is given by: q=5L0.5K0.25. In the short run, the firm has 256 units of capital. Find the Marginal Product of Labor (MPL). Fill in the appropriate numbers in the function below. MPL = ( ) L-0.5
The estimated short-run cost function of a Japanese beer manufacturer is C(q) = 0.4915. 1.000 At what positive quantity does the average cost function reach its minimum? If a $500 per-unit tax is applied to the firm, at what positive quantity is the after-tax average cost minimized? Average cost before the tax is minimized at a quantity of units. (Enter your response rounded to three decimal places) units. (Enter your response rounded to three decimal Average cost with the $500...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 49. If the price of Labor, w = $6 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 28 units of output?