A) Qa B) Qb C) Qc D) Qd Suppose a firm producing masks has a Cobb-Douglas...
Suppose a firm producing masks has a Cobb-Douglas production function Q = 3KL. Which of the following curves represent the firm's isoquant of producing 120 masks? 70 60 QA 50 QB 40 K Qc 30 QD 20 10 o 10 11 9 2 3 5 4 6 OQA OQв ООс OQD
Suppose a firm producing masks has a Cobb-Douglas production function Q = 3KL. Which of the following curves represent the firm's isoquant of producing 90 masks? 70 60 QA 50 40 Qc K 30 QD 20 10 3 0 0 1 2 11 4 3 5 6 7 8 9 10 L
Suppose that firms A, B, C and D are Bertrand duopolists in the salt industry. The market demand curve can be specified as Q=100-3p, Q=qA+qB+qC+qD. (The firms choose prices simultaneously.) The cost to firm A is C(qA)=7qA. The cost to firm B is C(qB)=3qB. The cost to firm C is C(qC)=7qC The cost to firm C is C(qD)=3qD
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...
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. what is the least cost input combination for producing 675 units of output?
suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. assuming no fixed cost, what is the firm's total cost of production if it uses least-cost input combination to produce 675 units of output?
a. Suppose that a firm has the Cobb-Douglas production function = 12K0.75 0.25. Because this function exhibits returns to scale, the long-run average cost curve is , whereas the long-run total cost curve is upward-sloping, with slope. b. Now suppose that the firm's production function is = KL. Because this function exhibits returns to scale, the long-run average cost curve is upward-sloping , whereas the long-run total cost curve is upward-sloping, with slope. a. Suppose that a firm has the...
* A firm produces output that can be sold at a price of $10. The Cobb-Douglas production function is given by Q = F(K,L) = K½ L½ If capital is fixed at 1 unit in the short run, how much labor should the firm employ to maximize profits if the wage rate is $2? * Given the Cobb-Douglas production function for Mabel’s factory Q = (L0.4) * (K0.7) a) Based on the function above, does Mabel’s factory experiencing economies...
A firm has a Cobb-Douglas production function q = AKL, where K denotes capital, L is labor, and A, a, b, are constants. ginal returns to labor in the short run if its production function is 1. Sketch an isoquant line, write a mathematical formula for its slope, and provide an interpretation for its meaning. 2. On a separate graph, draw an isocost line, write a mathematical formula for its slope, and provide an interpretation for its meaning. 3. On...
) A firm produces output that can be sold at a price of $10. The Cobb-Douglas production function is given by Q = F(K,L) = K½ L½ If capital is fixed at 1 unit in the short run, how much labor should the firm employ to maximize profits if the wage rate is $2?