You are an efficiency expert hired by a manufacturing firm that uses K and L as...
You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w (price of labor) = $40, r (price of capital) = $100, MPL = 20, and MPK = 40 is the firm minimizing cost? Please explain and show any calculations.
(b) The production function for a competitive firm is Q = K0.5L0.5. The firm sells its output at a price of $10 and can hire labor at a wage of $5.
Marginal Product of labor = 0.5K0.5L0.5
Capital is fixed at 25 units. What is the profit-maximizing quantity of labor? Please show your calculations.
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You are an efficiency expert hired by a manufacturing firm that
uses K and L as...
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Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
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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
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E. L=20; K=20
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dont need a big answer . Lulu owns a firm that produces leggings. The production function...
dont need a big answer
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Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...
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dont need a big answer
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