Suppose the short-run production function is q = 8L0.5. If the marginal cost of producing the...
Suppose the short-run production function is q = 8L0.5. If the marginal cost of producing the 20th unit is $12, what is the wage per unit of labor?
Homework Answers
The short-run production function is q = 8L^(0.5)
The marginal product of the labor is MPL = dq/dL = 8*(0.5)L^(0.5-1)
=4L^(-0.5)
At L = 20, the marginal product of the labor is MPL = 4L^(-0.5)
=4*(20)^(-0.5)
=0.894427191
MC(L=20) = $12
Hence, the wage per unit of labor = W = MC*MPL = $12*0.894427191 = $10.73312629
Thus, the wage per unit of labor is $10.73312629
Add Answer to:
Suppose the short-run production function is q =
8L0.5. If the marginal cost of producing the...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 36. If the price of Labor, w = $12 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 48 units of output? MC = ________________________
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of...
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of producing the 10th unit is S5, then one can conclude that the wage per unit of laboris $0.05. O $0.25 cannot be determined without additional information $1.00
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 49. If the price of Labor, w = $6 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 28 units of output?
Save Answer Consider that the short-run production function for meat-packaging firm is q=0.5 of the marginal...
Save Answer Consider that the short-run production function for meat-packaging firm is q=0.5 of the marginal cost of producing the 10th unit is $5, then one can conclude that the wage per unit of laboris 2.5 points $0.25 $1.00 cannot be determined without additional information $0.05
[Short-Run Production] Suppose that a firm is producing in the short run with output given by:...
[Short-Run Production] Suppose that a firm is producing in the short run with output given by: Q = 200.5L – 2.5L2, The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $50 per unit. Find the firm’s optimal use of labor and associated level of output. (For extra practice, what is the firm’s associated profit?) I have already finished and went to check my work on Chegg and...
In problems 7-8 you will start with a short run production function, and learn how to...
In problems 7-8 you will start with a short run production function, and learn how to derive a cost function and marginal cost function from this. Suppose that short run production function is: 9 = 220.25 and the wage is: w=64. (For simplicity, there is just labor in this production function.) 7. Solve for total cost function, that is, the total cost of producing q units of output. (Hint: start by solve the production for L by itself, which gives...
Suppose that a firm is producing in the short run with output given by: Q =...
Suppose that a firm is producing in the short run with output given by: Q = 50L - 50L? The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $10 per unit. Find the firm's optimal use of labor. Enter as a value.
Question 4 a) For the production function f(L,K)= L13K2/3, find the long run cost function, marginal...
Question 4 a) For the production function f(L,K)= L13K2/3, find the long run cost function, marginal cost function and average cost function. (20 points) b) For the same production function above, find the short run variable cost function and total cost function when capital is fixed at 500 units. (10 Points) Question 5 Suppose inputs can be perfectly substituted at a constant rate of two units of labor for every one unit of capital, while producing the same level of...
Short Run Cost Curves: Consider two firms, producing different products, with the following production functions: q=5KL...
Short Run Cost Curves: Consider two firms, producing different products, with the following production functions: q=5KL (1) q=5(KL).5 (2) a. For a short-run situation in which K=100, and given wage = 3 and cost of capital = 1, derive expressions short run total cost for each production function. (Start by using the production function to develop an expression for L in terms of q, and then substitute that, and the given parameters, into the generic expression for Total Cost =...
Question 3 4 pts Suppose in the short run a firm's marginal cost of production is...
Question 3 4 pts Suppose in the short run a firm's marginal cost of production is MC = $10. If the wage rate is $4, what is the Marginal Product of Labor (MP)? 2.5 .25 None of the other answers is true. 4
Consider that the short-run production function for meat-packaging firm is q=20.5. If the marginal cost of producing the 10th unit is S5, then one can conclude that the wage per unit of laboris $0.05. O $0.25 cannot be determined without additional information $1.00
Save Answer Consider that the short-run production function for meat-packaging firm is q=0.5 of the marginal cost of producing the 10th unit is $5, then one can conclude that the wage per unit of laboris 2.5 points $0.25 $1.00 cannot be determined without additional information $0.05
In problems 7-8 you will start with a short run production function, and learn how to derive a cost function and marginal cost function from this. Suppose that short run production function is: 9 = 220.25 and the wage is: w=64. (For simplicity, there is just labor in this production function.) 7. Solve for total cost function, that is, the total cost of producing q units of output. (Hint: start by solve the production for L by itself, which gives...
Suppose that a firm is producing in the short run with output given by: Q = 50L - 50L? The firm hires labor at a wage of $50 per hour and sells the good in a competitive market at P = $10 per unit. Find the firm's optimal use of labor. Enter as a value.
Question 4 a) For the production function f(L,K)= L13K2/3, find the long run cost function, marginal cost function and average cost function. (20 points) b) For the same production function above, find the short run variable cost function and total cost function when capital is fixed at 500 units. (10 Points) Question 5 Suppose inputs can be perfectly substituted at a constant rate of two units of labor for every one unit of capital, while producing the same level of...
Question 3 4 pts Suppose in the short run a firm's marginal cost of production is MC = $10. If the wage rate is $4, what is the Marginal Product of Labor (MP)? 2.5 .25 None of the other answers is true. 4
Most questions answered within 3 hours.
-
An infinite sheet of charge that has a surface charge density of
39 nC/m2 lies in...
asked 9 minutes ago -
After watching the lectures I am still having a hard time
understanding these equations.
1. The...
asked 1 hour ago -
Testing:
H0:μ=56.9
H1:μ<56.9
Your sample consists of 23 subjects, with a mean of 56.3 and
standard...
asked 1 hour ago -
straight wire, labeled as Wire A, lies horizontally on a
tabletop and is oriented to run...
asked 1 hour ago -
For a Chi-Squared Goodness of Fit Test about a uniform
distribution, complete the table.
Round to...
asked 1 hour ago -
Milk of magnesia is only slightly soluble in water. Kc for the
reaction Mg(OHs)(s)>Mg2+(a) + 2OH-1(aq)...
asked 1 hour ago -
Excel's HYPGEOM.DIST function can be used to compute _____.
a. both hypergeometric probabilities and cumulative
hypergeometric...
asked 2 hours ago -
The rocket used for the human lunar missions was the Saturn V
rocket. At liftoff the...
asked 1 hour ago -
1. The East Street Bagel Shop has a weekly demand for 3,500
bagels, which they make...
asked 1 hour ago -
paraphrasing each paragraph
“Where two or more persons knowingly act together unlawfully,
the act of each...
asked 2 hours ago -
The lateral line system in fish is contained which of the
following?
chemoreceptors
photoreceptors
mechanoreceptors
odor...
asked 2 hours ago -
Find the y-intercept of y =-5 x. The y-intercept of y equals
negative 5 x is______...
asked 2 hours ago