Question

for a production function q = 3L + 5K, what's the long run labor demand, long...

for a production function q = 3L + 5K, what's the long run labor demand, long run capital demand, and long run total cost in terms of q, w, r? I need a step by step defination. I got w/r = 3/5 and I'm stuck.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

& q = 5k +32 let Laber Input Price Capital sniput Price Iso cost line c = what ok & whese Life and kt is the Cost DinimizatioLabo be to gn that core, from will employ only it is cleaper compose capital and also benefit fato of toboos is higher (k 2*)Carl MRTS C a & gl& را ۱۰۰ 33 that case Therefore, in only capital will be used as it is cheaper and benefit Ratio is higherMRTS r ره ما w ماما PIE In that case, both are both input from will employ equally as cheapers Ton that case any point on -q

Add a comment
Know the answer?
Add Answer to:
for a production function q = 3L + 5K, what's the long run labor demand, long...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • What is the long-run cost function for a fixed-proportions production function when it takes five units...

    What is the long-run cost function for a fixed-proportions production function when it takes five units of labor and four units of capital to produce one unit of output? Describe the long-run cost curve. Multiply the inputs by their prices and sum to determine total cost Let w be the cost of a unit of labor and r be the cost of a unit of capital. The long-run cost function C(q) for the fixed-proportions production function in terms of w,...

  • 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...

  • 5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at...

    5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2 and w $3, what is the firm's cost function? 2q 5q 2K a. b. C. d. 3L 3L+ 2K e. 5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2...

  • 1. A firm operates in the long run. Its long-run production function is given as: Q...

    1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....

  • 8.13. A firm produces a product with labor and capital. Its production function is described by...

    8.13. A firm produces a product with labor and capital. Its production function is described by Q = L + K. The marginal products associated with this production function are MPL = 1 and MPK = 1. Let w= 1 and r = 1 be the prices of labor and capital, respectively. a) Find the equation for the firm's long-run total cost curve as a function of quantity Q when the prices labor and capital are w = 1 and...

  • Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and...

    Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and Q is quantity. If capital is fixed at 4 in the short run. Suppose the cost of a unit of capital is $2 (r=2), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? A. TC=4+Q B. TC=4+0.5Q C. TC=8+Q D. TC=8+0.5Q

  • 1. Por each of the following production functions (a and b) find the following equations (Hy...

    1. Por each of the following production functions (a and b) find the following equations (Hy in terms of Qow and li) MRZSK D) Long-run capital and Tabor demand curve iii) Long-run total cost curve iv) Short-run capital and labor demand curve if the firm is stuck with R = 9 v) Short-run total cost if the firm is stuck with K – 9. (a) Q-12VKA (b) Q=LK +6L 1.2. Meals must be produced with 5 chefs and 2 ovens...

  • Suppose the production function is given as Q = VLK. Suppose also that the price of...

    Suppose the production function is given as Q = VLK. Suppose also that the price of labor w = 10 and the price of capital r = 40 1) Derive the equation of the isoquant corresponding to this production function? 2) What type of return to scale does this production exhibit? 3) Does this production function exhibit a diminishing MRTS? Why? 4) Based on this production function, is the law of diminishing marginal returns satisfied? 5) Derive the demand curves...

  • Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor...

    Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor and Q is quantity. If capital is fixed at 4 in the short run. Suppose the cost of a unit of capital is $1 (r=1), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? OTC = 8+Q OTC = 8+0.5Q OTC = 4+ 0.5Q OTC = 4+Q Question 9 (1...

  • Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm...

    Part I: Long-Run Production and Cost Functions (12 points) Suppose the production function of a firm is given by q Lo.5 K0,5. The prices of labor and capital are given by w 2 and r 5, respectively. a) Write the firm's cost minimization problem formally. b) What returns to scale does the production function exhibit? Why? c) What is the optimal capital to labor ratio? Show your work. d) What is the slope of the expansion path and what is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT