Givens: 10 * L +40 * K min L>0, K >0 s.t. 50 < K.25 * L.25 • The marginal product of labor: MPL = .25 * 5:16 • The marginal product of capital: MPK = .25 * :26 Equation Description: A firm is attempting to minimize total cost subject to sufficiently employing units of labor and units of capital to produce an output level at least as large as a specified output quota. Total cost equals the cost to...
Givens: 40 * L + 120 * K min L>0, K>0 300 < K.75* L 25 • The marginal product of labor: MPL = .25 * :75 • The marginal product of capital: MPK = .75 * :26 Equation Description: A firm is attempting to minimize total cost subject to sufficiently employing units of labor and units of capital to produce an output level at least as large as a specified output quota. Total cost equals the cost to employing...
Equation Description: A firm is attempting to minimize total cost subject to sufficiently employing units of labor and units of capital to produce an output level at least as large as a specified output quota. Total cost equals the cost to employing units of labor plus the cost to employing units of capital. A firm's production function is the product of two terms: the first term is units of capital raised to the .25 power; and, the second term is units...
Given the following: u = z;25 * 0,75 тах 21 > 0, x2 > 0 s.t. P1 * x1 +P2 * x2 <I • The marginal utility of good 1: MU1 = .25 * • The marginal utility of good 2: MU2 = .75 * " • Baseline Scenario: pi = 8, P2 = 4 and I = 400 • New Scenario: pi = 8, P2 = 8 and I = 400 Equation Description: A consumer is attempting to maximize...
Given the following: u = z;25 * 0,75 тах 21 > 0, x2 > 0 s.t. P1 * X1 + P2 * 22 <I • The marginal utility of good 1: MU = .25 * 3 • The marginal utility of good 2: MU2 = .75 * • Baseline Scenario: p1 = 8, P2 = 4 and I = 400 • New Scenario: p1 = 8, P2 = 8 and I = 400 Equation Description: A consumer is attempting to...
Given the following: 25 тах ¤1 > 0, x2 > 0 < 2000 5 * x1 + 20 * x2 s.t. • MU, = .75 * MU, = .25 * Equation Description: A consumer is attempting to maximize utility subject to a budget constraint. Utility equals the product of two terms: the first term is units of good 1 raised to the.75 power; and, the second term is units of good 2 raised to the .25 power. The price per...
A. L=25; K=16 B. L=40; K=10 C. L=16; K=25 D. L=10; K=40 E. L=20; K=20 = VE Lulu owns a firm that produces leggings. The production function is given by Q=2VKVL, so that MPL K and MPK = Q is Lulu's VL VK output, K is capital, L is labor, and MP is the marginal product. The wage (w)rate per worker (L) is $40 per day and rental rate (r) per unit of capital (K) is $10 per day. How...
How many units of consumption of good 1 maximizes utility? 37.5 units of good 1 24.34 units of good 1 16.67 units of good 1 5 units of good 1 None of the above 50.5 units of good 1 How many units of consumption of good 2 maximizes utility? None of the above 37.5 units of good 2 16.67 units of good 2 5 units of good 2 24.34 units of good 2 37.5 units of good 2 What is...
1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L? Assume K = 25. a. Fill in the following table. (First, find the total output from the production function, then find the marginal product by dividing the change in total output by change in labor.) Capital MPL Labor 7 Total Output 126 APL 18 25 12 25 25 25 25 25 10 11 12 13 14 15 25 25 25 b. How many units...
10 pt 2 Assume a production function exists and is Q = (K^.25 L^.75) let a firm have a total of $1,100 to spend on labor and capital. Let price of labor equal $5 and price of capital equals $10 1) calculate the optimal values of Q, and the new isoquants and plot the LR expansion path. 2) Keeping K at 25, and letting L vary, plot the SR expansion path and the TPL curve