Suppose a firm producing masks has a Cobb-Douglas production function Q = 3KL. Which of the...
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
A) Qa B) Qb C) Qc D) Qd 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 QB 40 Qc K 30 QD 20 10 0 0 1 2 3 4 10 11 5 6 7 8 9 L
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 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. 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...
3. Suppose a company's production is given by the Cobb-Douglas function: Q = 60L3K3 Where L & K represent quantities of labor and capital. Suppose each unit of labor costs $25, each unit of capital costs $100, and the company wants to produce exactly Q=1920. a. Use the method of Lagrangian Multipliers to find the quantity of Land K that meet production requirements at the lowest cost. (5 pts) b. Show that the values found in part (a) satisfy the...
A “Cobb–Douglas” production function relates production (Q) to factors of production, capital (K), labor (L), and raw materials (M), and an error term u using the equation: ? = ???1??2M?3? ?, where ?, ?1, ?2, and ?3 are production parameters. a) Suppose that you have data on production and the factors of production from a random sample of firms with the same Cobb–Douglas production function. How would you propose to use OLS regression analysis to estimate the above production parameters,...
Mara's analytics firm, Python and Potato, has the following Cobb-Douglas production function: q K"L® where a, ß> 0. Mara can purchase all the K and L she wants in competitive input markets at input costs of v and w, respectively a) Solve for Mara's cost-minimizing values of K and L b) Derive Mara's long-run total cost function c) Calculate his MC