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(6 pts) Consider the production function q = 3L05 K. a. Sketch the isoquant for producing...
2. Consider a firm producing pizza with production function q = KL, that faces input prices...
2. Consider a firm producing pizza with production function q = KL, that faces input prices w= $10 and r = $100 for labor and capital, respectively. a. Derive the isoquant equation. Find the isoquant of an output q = 1. Draw it in a figure with l in the horizontal axis and k in the vertical axis. b. Does this firm's production exhibit increasing, decreasing or constant returns to scale? Briefly explain c. Find the labor demand, and the...
Using the production function Q = ( and output levels of Q=2, Q=4, Q=6 A). Suppose...
Using the production function Q = (
and output levels of Q=2, Q=4, Q=6
A). Suppose the price of L and K is $3/hr. On a graph show
isocost lines corresponding to total costs of $12, $24, and $36.
Using isoquants and isocost lines, locate three points on the
expansion path and draw the expansion path. Show your
calculations.
B). Using the three points on the expansion path, calculate the
firm's long run total and average costs at each of...
Draw the isoquant of following production function and indicated level of output. Q=min(2L,0.5L+0.5K,K) Q=4
Draw the isoquant of following production function and indicated level of output. Q=min(2L,0.5L+0.5K,K) Q=4
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The...
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firms Production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm’s Total Cost function? TC(Q) = ____________________________ b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm’s isoquant for...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = ½ L-1/2K1/2and MPK = ½ L1/2K-1/2 a) Suppose the price of labor is w = 18, and the price of capital is r = 2. Derive the firm’s total cost function. b) What is the firm’s marginal cost? c) For this problem, you will sketch the graph of the firm’s isoquant for Q...
A production function given by: Q = 10K^1/5L^1/2 (a) Find out the equation for an isoquant...
A production function given by: Q = 10K^1/5L^1/2 (a) Find out the equation for an isoquant to produce 20 units. Show your work. (2+4 = 6 points) (b) Write down the equation for the short-run cost function where K is fixed at 243, price of capital is 10 and price of labor is 9 per unit. Show your work. (2+4 = 6 points)
1. Sketch the production isoquant for a production function that takes two inputs (e.g. y = f[l,k]). Show the cost minim...
1. Sketch the production isoquant for a production function that takes two inputs (e.g. y = f[l,k]). Show the cost minimizing combination of inputs by adding an isocost line to your sketch. (a) What is the relationship between the trs and the relative price of one input compared to the other at the cost minimizing combination of inputs? (b) What does the assumption of a diminishing technical rate of substitution (trs) mean? (What does a diminishing trs mean imply for...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q)= b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm's...
Suppose the production function for automobiles is ? = ?? where Q is the quantity of...
Suppose the production function for automobiles is ? = ?? where Q is the quantity of automobiles produced per year, L is the quantity of labor (man-hours) and K is the quantity of capital (machine hours). a) What is the total product (number of automobiles) if the firm uses 25 man hours and 2 machine hours? b) Sketch the isoquant corresponding to a quantity of Q=50. c) What is the general equation for the isoquant corresponding to any level of...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this firm's isoquant map B. What equation do you use to find a cost-minimizing combination of inputs for a certain output level Q.? K C. The marginal products of labor and capital are given by MP, = 50, and L MPK = 50, L respectively. The price of labor is $5 per unit, and the price of K capital is $20 per unit. What is...
2. Consider a firm producing pizza with production function q = KL, that faces input prices w= $10 and r = $100 for labor and capital, respectively. a. Derive the isoquant equation. Find the isoquant of an output q = 1. Draw it in a figure with l in the horizontal axis and k in the vertical axis. b. Does this firm's production exhibit increasing, decreasing or constant returns to scale? Briefly explain c. Find the labor demand, and the...
Using the production function Q = (
and output levels of Q=2, Q=4, Q=6
A). Suppose the price of L and K is $3/hr. On a graph show
isocost lines corresponding to total costs of $12, $24, and $36.
Using isoquants and isocost lines, locate three points on the
expansion path and draw the expansion path. Show your
calculations.
B). Using the three points on the expansion path, calculate the
firm's long run total and average costs at each of...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q)= b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm's...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this firm's isoquant map B. What equation do you use to find a cost-minimizing combination of inputs for a certain output level Q.? K C. The marginal products of labor and capital are given by MP, = 50, and L MPK = 50, L respectively. The price of labor is $5 per unit, and the price of K capital is $20 per unit. What is...
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