Please help. 4. An ice cream vendor has the following production function: Q = LM Where,...
Please help.
4. An ice cream vendor has the following production function:
Q = LM
Where, Q = the number of ice cream cones produced per day
L = the number of workers hired per day
and M = the number of ice cream machines rented per day.
Associated with this production function are the following marginal product relationships: MPL = M, and MPM = L
a) Plot the isoquant for 100 ice cream cones per day
b) Find the optimal combination of inputs, if wage rate per day = $30 and ice cream machine rental per day = $120, and 100 ice cream cones are to be produced.
c) How is your answer to (b) affected, if machines now cost $30 per day to rent?
Homework Answers
Add Answer to:
Please help.
4. An ice cream vendor has the following production
function:
Q = LM
Where,...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that the price of labor is $10 per unit and the price of capital is S1 per unit. (a) Graph the isoquant for q-121 000. (b) On the graph you drew for part a), draw several isocost lines including one that is tangent to the isoquant you...
A firm produces gizmos according to the production function Q =10KL , where Q is the...
A firm produces gizmos according to the production function Q =10KL , where Q is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How...
Suppose the production function for automobiles is ? = ?? where Q is the quantity of...
Suppose the production function for automobiles is ? = ?? where Q is the quantity of automobiles produced per year, L is the quantity of labor (man-hours) and K is the quantity of capital (machine hours). a) What is the total product (number of automobiles) if the firm uses 25 man hours and 2 machine hours? b) Sketch the isoquant corresponding to a quantity of Q=50. c) What is the general equation for the isoquant corresponding to any level of...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos...
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How many workers should...
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....
The negative of the slope of an isoquant on a tangent line a particular (L,K) bundle...
The negative of the slope of an isoquant on a tangent line a particular (L,K) bundle of factor inputs is equal to the __ Assume questions are ordered top to bottom as a, b, c, d. Fig. 2: Bank Contour Plot Production Function:Q(L,K)=104 Machines 100 100 100 300 500 700 900 hr/hr (K) Human Bank Tellers hr/hr (L) 0 2 0 40 60 80 100 Oratio of the wage rate to the capital rental rate (w/r) Omarginal rate of technical...
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has...
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has the pro- duction function Q = F(L,K) = 207LVK, where L is the number of full-time workers the firm hires per day and K is the number of machines the firm uses per day. Both L and K can be non-integers (for example, a worker can work for half a day). Each worker costs $100 a day and each machine costs $200 a day....
A firm has the following production function Q= √KL Where Q is output per week and...
A firm has the following production function Q= √KL Where Q is output per week and K and L are units of capital and labor per week. If rental price of capital v= 100 per week and the wages w = 400 per week obtain the quantity of K and L that min the cost for Q = 10.
Joe owns a small coffee shop, and his production function is q = 3K1/2L1/2 where q...
Joe owns a small coffee shop, and his production function is q = 3K1/2L1/2 where q is total output in cups per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). Joe's capital is currently fixed at K=64 machines, the price of K is $5 and the price of L is $2. What is the marginal cost? a. MC=q/12 b. MC=2L+320 c. MC=q/6 d. MC=q/12+320 e. none of the...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that the price of labor is $10 per unit and the price of capital is S1 per unit. (a) Graph the isoquant for q-121 000. (b) On the graph you drew for part a), draw several isocost lines including one that is tangent to the isoquant you...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How many workers should...
The negative of the slope of an isoquant on a tangent line a particular (L,K) bundle of factor inputs is equal to the __ Assume questions are ordered top to bottom as a, b, c, d. Fig. 2: Bank Contour Plot Production Function:Q(L,K)=104 Machines 100 100 100 300 500 700 900 hr/hr (K) Human Bank Tellers hr/hr (L) 0 2 0 40 60 80 100 Oratio of the wage rate to the capital rental rate (w/r) Omarginal rate of technical...
1. A firm uses labor (L) and machine (K) to assemble garden benches. The firm has the pro- duction function Q = F(L,K) = 207LVK, where L is the number of full-time workers the firm hires per day and K is the number of machines the firm uses per day. Both L and K can be non-integers (for example, a worker can work for half a day). Each worker costs $100 a day and each machine costs $200 a day....
Most questions answered within 3 hours.
-
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 13 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 44 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago