![At the beginning of the electronic tablet era, there was only one method to produce tablets. Summarizing inputs into labor L and capital K, the proportion K/L of capital to labor use in this method (also known as capital intensity) was fixed at 2 1. Derive the demand for labor L(w.r.q) as a function of the price of labor w, the price of capital r and of the output level q. [Warning: this function may be constant with respect to some variables.]](http://img.homeworklib.com/questions/2dae2780-d02b-11ea-8a9f-fb15beca26d5.png?x-oss-process=image/resize,w_560)
Homework Answers
Production function where capital labor ratio is fixed at 2, is given by q = min(K, 2L). Now we see that K/L = 2 or K = 2L. Then we use q = min (2L, 2L). Hence the demand function for Labor is 2L = q or L = 0.5q. This is independent of input prices because labor and capital are used in fixed ratio.
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At the beginning of the electronic tablet era, there was only one method to produce tablets....
at the beginning of the electronic tablet era (Only need the third question, i already posted...
at the beginning of the electronic tablet era
(Only need the third question, i already posted the first 2
questions)
At the beginning of the electronic tablet era, there was only one method to produce tablets. Summarizing inputs into labor L and capital K, the proportion K/L of capital to labor use in this method (also known as capital intensity) was fixed at 2 Derive the demand for labor L(w.r.q) as a function of the price of labor w, the...
4. Consider a monopolist that only hires one input, labor, to produce output. The monopolist's demand...
4. Consider a monopolist that only hires one input, labor, to produce output. The monopolist's demand curve is p 100 q, its production function is q-L5, and the price of labor is w. (The labor market is competitive however.) Derive the firm's labor demand function, which is a function of w. If w 24, how many units of labor will it employ? 0.5
Suppose labor (L) and capital (K) are fixed proportion inputs, and that each unit of output...
Suppose labor (L) and capital (K) are fixed proportion inputs, and that each unit of output must be produced with exactly 5 units of labor and 2 unit of capital. The price of a unit of labor is w, and the price of a unit of capital is r. a. Write down the production function. b. Derive the equation for the expansion path. c. Derive the equation for the long-run total cost function. d. Graphically depict the labor demand curve....
Labor Economics 1. Derive the labor demand functions that are associated with the two production functions...
Labor Economics
1. Derive the labor demand functions that are associated with the two production functions given below. The level of output is denoted by q. The two inputs are labor (h) and capital (k). You should derive the function that relates the level of labor utilized at each possible output level, q 〉 0, We will assume that the price per unit of capital is r 1, that the wage rate is w 2 1. q- min[2h, 3k) 2....
1. Suppose that a firm's production function of output Q is a function of only two...
1. Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 25LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for capital would be: wQ A) K = 25r B) K = C) K- 25r wQ rQ 25w 25w rQ 25wQ D) E) KE
Suppose a production function is given by F(K, L) = KL2 ; the price of capital is $10 and the price of labor is $15. Wha...
Suppose a production function is given by F(K, L) = KL2 ; the price of capital is $10 and the price of labor is $15. What combination of labor and capital minimizes the cost of producing any output? To produce a given level of output q, how many units of L and K are needed? Express the optimal inputs choices L(q) and K(q) as functions of the level of output q
A company A can produce widgets according to Q=5K3/4L1/4 where Q is the output of widgets,...
A company A can produce widgets according to Q=5K3/4L1/4 where Q is the output of widgets, and K, L are quantities of capital and labor used. Are there constant, increasing or decreasing returns to scale in widget production? Explain. Are there, constant, increasing or decreasing marginal products of factors? Explain In the short run, the amount of capital used by company A. is fixed. Derive the short-run cost function. (Note that the short-run cost function will show C as a...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Please make sure you label each part of the question, and please make sure to show...
Please make sure you label each part of the question,
and please make sure to show ALL of your math work! Please make
sure your handwriting is clear and easy to read. Thank
you!
2. Suppose labor (L) and capital (K) are fixed proportion inputs, and that each unit of output must be produced with exactly 5 units of labor and 2 unit of capital. The price of a unit of labor is w, and the price of a unit...
at the beginning of the electronic tablet era
(Only need the third question, i already posted the first 2
questions)
At the beginning of the electronic tablet era, there was only one method to produce tablets. Summarizing inputs into labor L and capital K, the proportion K/L of capital to labor use in this method (also known as capital intensity) was fixed at 2 Derive the demand for labor L(w.r.q) as a function of the price of labor w, the...
4. Consider a monopolist that only hires one input, labor, to produce output. The monopolist's demand curve is p 100 q, its production function is q-L5, and the price of labor is w. (The labor market is competitive however.) Derive the firm's labor demand function, which is a function of w. If w 24, how many units of labor will it employ? 0.5
Labor Economics
1. Derive the labor demand functions that are associated with the two production functions given below. The level of output is denoted by q. The two inputs are labor (h) and capital (k). You should derive the function that relates the level of labor utilized at each possible output level, q 〉 0, We will assume that the price per unit of capital is r 1, that the wage rate is w 2 1. q- min[2h, 3k) 2....
1. Suppose that a firm's production function of output Q is a function of only two inputs, labor (L) and capital (K) and can be written Q = 25LK. Letting the wage rate for labor be w and the rental rate of capital be r, the equation for the firm's demand for capital would be: wQ A) K = 25r B) K = C) K- 25r wQ rQ 25w 25w rQ 25wQ D) E) KE
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Please make sure you label each part of the question,
and please make sure to show ALL of your math work! Please make
sure your handwriting is clear and easy to read. Thank
you!
2. Suppose labor (L) and capital (K) are fixed proportion inputs, and that each unit of output must be produced with exactly 5 units of labor and 2 unit of capital. The price of a unit of labor is w, and the price of a unit...
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