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Amy's production function for comic books is Q=J0.25 L 0.25, where J is the number of...
Touchie MacFeelie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q = J1/2 * L3/4
Touchie MacFeelie publishes comic books. The only inputs he needs are old jokes and cartoonists. His production function is Q = J1/2 * L3/4, where J is the number of old jokes used, L the number of hours of cartoonists’ labor used as inputs, and Q is the number of comic books produced.1) Touchie MacFeelie’s irascible business manager, Gander Mac-Grope, announces that old jokes can be purchased for $1 each and thatthe wage rate of cartoonists’ labor is $2.(a) Suppose...
2. Inputs and outputs Amy's Performance Pizza is a small restaurant in Dallas that sells gluten-free...
2. Inputs and outputs Amy's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Amy's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Amy signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Amy's kitchen cannot fit more than three ovens, Amy cannot change the number of ovens she uses in her production of...
2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit...
2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit cost of labor is $20, capital is $80, and the product price is $12 per unit. The firm is currently producing 100 units of output and has determined that its cost minimizing quantities of labor and capital usage for this level of output is 20 and 5 respectively. The product price is $12 per unit. a. Determine the current total cost for 100 units,...
How is A not the answer?? 21. Consider a firm with production function f(L, K) -2L+8K....
How is A not the answer??
21. Consider a firm with production function f(L, K) -2L+8K. Assume that capital is fixed at K=6. Assume also that the price of capital r=10 and the price of labor w-2. units is? Then, the average variable cost of producing q AVC (q)-q-48/q AVC (q)-1+12/q AVC (q) 1-48/q AVC (q)-2-48/q AVC (q) q+12/q
A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor...
A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...
A firm’s production technology is given by the production function q = 0.25 LK where L...
A firm’s production technology is given by the production function q = 0.25 LK where L represents labor hours, K machine hours and q the amount of output. The market wage and rental rates are, w= $16 and r = $256. The firm is operating in the long run where it can adjust both inputs. (a) Suppose that the firm currently is using ten labor hours for each machine hour. Is it minimizing its long run total cost? If so...
Problem 3. A profit-maximizing firm produces apples, and its production function is (L)- where L is...
Problem 3. A profit-maximizing firm produces apples, and its production function is (L)- where L is the level of labor. Suppose the wage isw-1. The price of one apple is denoted by pa 1. Determine the marginal product of labor. Does the production function exhibit dimin ishing marginal product? Explain why. 2. Determine the cost function c(g) What is the implication of diminishing marginal product on the cost function? 3. Find the optimal production level (pa). Plot the (inverse) supply...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
QUESTION 12 61-0.2L, where Q is output and L is labor force. Find the size of...
QUESTION 12 61-0.2L, where Q is output and L is labor force. Find the size of the labor force that A firm's short-run production function is Q = maximizes this firm's output The labor force that maximizes output is: QUESTION 13 A firm's short-run average cost function is ATC a=100,000 +75,000 + 1,000q, where q is output and ATC is average total cost The output that minimizes average total cost is: QUESTION 14 글어 +6Q+ A firm faces an inverse...
2. Inputs and outputs Amy's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Amy's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Amy signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Amy's kitchen cannot fit more than three ovens, Amy cannot change the number of ovens she uses in her production of...
How is A not the answer??
21. Consider a firm with production function f(L, K) -2L+8K. Assume that capital is fixed at K=6. Assume also that the price of capital r=10 and the price of labor w-2. units is? Then, the average variable cost of producing q AVC (q)-q-48/q AVC (q)-1+12/q AVC (q) 1-48/q AVC (q)-2-48/q AVC (q) q+12/q
A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
Problem 3. A profit-maximizing firm produces apples, and its production function is (L)- where L is the level of labor. Suppose the wage isw-1. The price of one apple is denoted by pa 1. Determine the marginal product of labor. Does the production function exhibit dimin ishing marginal product? Explain why. 2. Determine the cost function c(g) What is the implication of diminishing marginal product on the cost function? 3. Find the optimal production level (pa). Plot the (inverse) supply...
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
QUESTION 12 61-0.2L, where Q is output and L is labor force. Find the size of the labor force that A firm's short-run production function is Q = maximizes this firm's output The labor force that maximizes output is: QUESTION 13 A firm's short-run average cost function is ATC a=100,000 +75,000 + 1,000q, where q is output and ATC is average total cost The output that minimizes average total cost is: QUESTION 14 글어 +6Q+ A firm faces an inverse...
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