Homework Answers
Add Answer to:
W= Continuing to use the three production functions: q = h(K, L) = K(1/3) [(1/3), q=g(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K,...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
just answer e,f,g,h,i,j. (a) (3 points) To begin, assume that a firm is producing using q...
just answer e,f,g,h,i,j.
(a) (3 points) To begin, assume that a firm is producing using q = h(K, L) = K(1/3) L (1/3). Suppose the firm currently owns 128 machines, the price of the good is P = $96, the rental rate of capital is r = $4, and the wage rate is w = $16. What level of Labour would be hired? How much would be produced? Would the firm make a profit or a loss? Suppose there are...
Provide a convincing argument that a firm using with g(K,L) =min{K/4, L/5} would select K*= 128...
Provide a convincing argument that a firm using with g(K,L) =min{K/4, L/5} would select K*= 128 in the Long Run given P=$96, w=$16 and r=$4??
5. Consider a firm with the production function F(K,L) = (K^3/5)(L^1/5) (a) Setup and solve the...
5. Consider a firm with the production function F(K,L) = (K^3/5)(L^1/5) (a) Setup and solve the long run cost minimization problem for the long run optimal amount of capital K*(w,r,q) and labor L*(w,r,q), and the long run minimized cost C* (w,r,q). (Hint: reduce the cost function for the next part. (b) Setup and solve the profit maximization problem over quantity using the cost function you solved for in the previous part. Solve for the profit maximizing quantity q *(p,w,r), cost...
(3) Consider the firm of the previous question (with f(L,K) = 2K√L and with w =...
(3) Consider the firm of the previous question (with f(L,K) = 2K√L and with w = 1 and r = 4). For the following questions suppose that this firm currently uses K = 4 machine hours, and that this can’t be changed in the short-run. f(L) = 8√L L = Q^2/64 C= 16 + Q^2/64 AC = 16/Q + Q/64 MC = Q/32 (e) In one graph draw the average cost and marginal cost curves. The graph should show the...
Let the production function be as follow: 2. L0.7 K.3 q(L, K) Also assume w 2 and r=4 Find out if we have increasing...
Let the production function be as follow: 2. L0.7 K.3 q(L, K) Also assume w 2 and r=4 Find out if we have increasing, decreasing or constant return to scale. a. Derive the long-run cost function. TC(q) b. Derive the average cost curve. Is it increasing or decreasing or constant in q? С. Let the production function be as follow: 3. q(L, K) LK3 Also assume w-4 and r=3 Find out if we have increasing, decreasing or constant return to...
4. Production of bikes requires 3 workers for every 2 machines, such that bikes are prodaced...
4. Production of bikes requires 3 workers for every 2 machines, such that bikes are prodaced according to F(K.L) min(3K, 2L) (a) Setup the short run cost minimization problem when R-6. (2 points) 5 (b) Solve for the short run optimal amount of labor Lsle) and short run minimized cost Csa(w,r.q). (3 points) (e) Now suppose the bike shop can freely choose capita! (K) and labor (L). Setup the long run cost minimiza- tion problem. (2 points) (d) Solve for...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 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...
Profit Functions Let the technology for producing golly-wompers be given by q L0.3K0.6. Assume the producers...
Profit Functions Let the technology for producing golly-wompers be given by q L0.3K0.6. Assume the producers of golly-wompers are maximizing profits in a perfectly competitive market and that p, w, r >> 0. Let K be fixed at sixteen units over the short run. Find the short-run variable factor 1. demand [L(q)] and optimal short-run output [q(p, w, r; K)] functions. What are the optimal quantity of labor and output when p $10? $48, w = $6, and r =...
A firm has a Cobb-Douglas production function of Q = K^(0.25) L^(0.75) (a) Does this production...
A firm has a Cobb-Douglas production function of Q = K^(0.25) L^(0.75) (a) Does this production technology exhibit increasing, constant, or decreasing returns to scale? (b) Suppose that the rental rate of capital is r = 1, the wage rate is w = 1, and the ?rm wants to produce Q = 3. In the long-run, what combination of L and K should they use? (It would be good to practice doing this with the Lagrangian, even if you can...
W= Continuing to use the three production functions: q = h(KL) K(1/3) L(1/3) q = g(K, L) = min{:K, L}, and q = f(K, L) = K (1/4)(3/4). (h) (6 points) What is the Long Run Cost curve for each of these when r = $4 and $16? (i) (6 points) What are the Long Run Average Cost here? How about the Marginal Cost? (j) (4 points) Provide a convincing argument that a firm using with h(K, L) or 9(K,...
just answer e,f,g,h,i,j.
(a) (3 points) To begin, assume that a firm is producing using q = h(K, L) = K(1/3) L (1/3). Suppose the firm currently owns 128 machines, the price of the good is P = $96, the rental rate of capital is r = $4, and the wage rate is w = $16. What level of Labour would be hired? How much would be produced? Would the firm make a profit or a loss? Suppose there are...
Let the production function be as follow: 2. L0.7 K.3 q(L, K) Also assume w 2 and r=4 Find out if we have increasing, decreasing or constant return to scale. a. Derive the long-run cost function. TC(q) b. Derive the average cost curve. Is it increasing or decreasing or constant in q? С. Let the production function be as follow: 3. q(L, K) LK3 Also assume w-4 and r=3 Find out if we have increasing, decreasing or constant return to...
4. Production of bikes requires 3 workers for every 2 machines, such that bikes are prodaced according to F(K.L) min(3K, 2L) (a) Setup the short run cost minimization problem when R-6. (2 points) 5 (b) Solve for the short run optimal amount of labor Lsle) and short run minimized cost Csa(w,r.q). (3 points) (e) Now suppose the bike shop can freely choose capita! (K) and labor (L). Setup the long run cost minimiza- tion problem. (2 points) (d) Solve for...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 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...
Profit Functions Let the technology for producing golly-wompers be given by q L0.3K0.6. Assume the producers of golly-wompers are maximizing profits in a perfectly competitive market and that p, w, r >> 0. Let K be fixed at sixteen units over the short run. Find the short-run variable factor 1. demand [L(q)] and optimal short-run output [q(p, w, r; K)] functions. What are the optimal quantity of labor and output when p $10? $48, w = $6, and r =...
Most questions answered within 3 hours.
-
A chemist had a bottle of HCl (aq) of unknown concentration. She
performed a titration experiment...
asked 19 minutes ago -
According to the network system security, please explain:
1- What is canary and how it does...
asked 1 hour ago -
Study the provided BagInterface and the methods implemented in
the ResizableArrayBag
For the following methods that...
asked 1 hour ago -
Enter your answer in the provided box. To what fraction of its
original volume, Vfinal/Vinitial, must...
asked 2 hours ago -
Can you figure out if any R functions used to subset a time
series 1 or...
asked 2 hours ago -
Which of the following is correct?
A. APC + MPS = 1
B. APS + MPS...
asked 2 hours ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 4 hours ago -
Compare and contrast the linear motion and angular motion
equations F ma and . That is,...
asked 3 hours ago -
Now that this course has taken you on a journey of introduction
to the world of...
asked 4 hours ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 6 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 6 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 8 hours ago