Lulu currently hires 4 workers and rents 9 machines to produce 12 leggings. Is Lulu minimizing her costs? How do you know?
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Lulu currently hires 4 workers and rents 9 machines to produce
12 leggings. Is Lulu minimizing...
dont need a big answer . Lulu owns a firm that produces leggings. The production function...
dont need a big answer
. Lulu owns a firm that produces leggings. The production function is given by Q = 2VKVL, so that MPL VK Vī VI and MPK Q is Lulu's VK output, K is capital, Lis 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. Lulu currently hires 4 workers and rents 9 machines to...
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 =...
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...
Name: 1. Consider a firm that hires workers (L) and produces output (Q). a. If the...
Name: 1. Consider a firm that hires workers (L) and produces output (Q). a. If the firm charges a price of $1 per unit output (P) and pays a nominal wage of $8 per worker (W), fill in the values in the following table, where MPL is marginal product of labor (units per worker), VMPL is the value of the marginal product of labor ($ per worker), and W/P is the real wage (units per worker). Labor Output MPL Price...
A firm's production function is Q = 70L0.6 K0:3. Its marginal product of labor is thus...
A firm's production function is Q = 70L0.6 K0:3. Its marginal product of labor is thus MP2 = 42L-0.4 0.3 and its marginal product of capital is MPK = 21L0.6 K-0.7. a. What returns to scale does this production function exhibit: constant, increasing, or decreasing? Show mathematically. b. Suppose the wage rate is $12 and the rental rate for capital is $48. Show that the firm is not minimizing cost when it employs 40 workers (L) per day and 15...
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per...
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of worker time per unit of machinery time. a. i. Determine whether the restaurant is minimizing its cost of production when the ratio of ii. Do you suggest any adjustment to improve the efficiency in the resource use? A cosmetic company produces skin cream bottles in its local store. The company...
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...
6) (4 points)The Longheel Press produces memo pads in its local shop. The company can rent...
6) (4 points)The Longheel Press produces memo pads in its local shop. The company can rent its equipment and hire workers at competitive rates. Equipment needed for this operation can be rented at $54 per hour, and labor can be hired at $12 per worker hour. The company has allocated $96,000 for the initial run of memo pads. The production function can be expressed as: Q = 0.25K0.25L0.75, where Q represents memo pads (boxes per hour), K denotes...
In positive economic models of the labor market, it is assumed that workers maximize utility (happiness)....
In positive economic models of the labor market, it is assumed that workers maximize utility (happiness). firms maximize profits. resources are scarce. all of these are true. 2 points QUESTION 13 Because of the principle of __________, marginal product of labor decreases as labor increases. economies of scale. diseconomies of scale. diminishing returns. constant returns to scale. 2 points QUESTION 14 The unemployment rate is computed as the number of employed divided labor force. the number of unemployed...
Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers...
Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers at wage w and rent capital at rental rate r. Suppose the firm has the production function: F(K, N) = K™NB with a + ß < 1 and a, ß E (0,1) ii) Set up the firm's profit maximization problems and solve for the optimal K*, L*, and 7* (profits) in terms of parameters(12 points) iii) What's the ** when a + b =...
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where...
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for the production function are MPK = L and MP, = K. The price of K is 4 and the price of L is 2. The firm is currently using K =16 and just enough L (you have to...
dont need a big answer
. Lulu owns a firm that produces leggings. The production function is given by Q = 2VKVL, so that MPL VK Vī VI and MPK Q is Lulu's VK output, K is capital, Lis 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. Lulu currently hires 4 workers and rents 9 machines to...
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...
Name: 1. Consider a firm that hires workers (L) and produces output (Q). a. If the firm charges a price of $1 per unit output (P) and pays a nominal wage of $8 per worker (W), fill in the values in the following table, where MPL is marginal product of labor (units per worker), VMPL is the value of the marginal product of labor ($ per worker), and W/P is the real wage (units per worker). Labor Output MPL Price...
A firm's production function is Q = 70L0.6 K0:3. Its marginal product of labor is thus MP2 = 42L-0.4 0.3 and its marginal product of capital is MPK = 21L0.6 K-0.7. a. What returns to scale does this production function exhibit: constant, increasing, or decreasing? Show mathematically. b. Suppose the wage rate is $12 and the rental rate for capital is $48. Show that the firm is not minimizing cost when it employs 40 workers (L) per day and 15...
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of worker time per unit of machinery time. a. i. Determine whether the restaurant is minimizing its cost of production when the ratio of ii. Do you suggest any adjustment to improve the efficiency in the resource use? A cosmetic company produces skin cream bottles in its local store. The company...
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...
Consider a representative firm that produces using capital (K) and labor (N). The firm hires workers at wage w and rent capital at rental rate r. Suppose the firm has the production function: F(K, N) = K™NB with a + ß < 1 and a, ß E (0,1) ii) Set up the firm's profit maximization problems and solve for the optimal K*, L*, and 7* (profits) in terms of parameters(12 points) iii) What's the ** when a + b =...
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for the production function are MPK = L and MP, = K. The price of K is 4 and the price of L is 2. The firm is currently using K =16 and just enough L (you have to...
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