Homework Answers
Add Answer to:
suppose that production for good X is charecterized by the followrng production tunction, Q-0505 where Ks...
Suppose a firm has the production function Q = 50KL with MP, = 50K and MP,...
Suppose a firm has the production function Q = 50KL with MP, = 50K and MP, = 50L . 1) If the wage rate is $10 per unit of labor and the rental rate of capital is $5 per unit of capital, how much capital and labor should the firm employ in the long run to minimize the cost of producing 40,000 units? 2) Using the solution in part 1), what will the firm's long-run total cost be?
A firm produces gizmos according to the production function Q =10KL , where Q is the...
A firm produces gizmos according to the production function Q =10KL , where Q is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How...
3. Suppose a firm has the production function Q = 50 KL 1) If the wage...
3. Suppose a firm has the production function Q = 50 KL 1) If the wage rate is $10 per unit of labor and the rental rate of capital is $5 per unit of capital, how much capital and labor should the firm employ in the long run to minimize the cost of producing 40,000 units? 2) Using the solution in part 1), what will the firm’s long-run total cost be?
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...
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos...
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How many workers should...
5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate...
5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate w = 16 , rental rate r = 2 , and the price of the materials m = 1. 1) Suppose in the short run, K is fixed at K *. What’s the solution to the firm’s short run cost-minimization problem? 2) What is the solution to the firm’s long run cost minimization problem given that the firm wants to produce Q units of...
Problem 1 Your firm produces output of some generic manufactured good Q according to the following...
Problem 1 Your firm produces output of some generic manufactured good Q according to the following production function: Q(L,K) = 2L1/451/2 Assume the wage paid to labor is $10, the rental rate of capital is $40, and the price of your product is $200. (a) What is the technical rate of substitution for this production function? (b) Suppose you have 80 units of capital in the short run. Find the profit maximizing amount of labor you should employ. (c) Find...
5. Suppose a firm has the production function Q=K1/2 [4M1/4 The wage rate w=16, rental rate...
5. Suppose a firm has the production function Q=K1/2 [4M1/4 The wage rate w=16, rental rate r=2, and the price of the materials m=1. 1) Suppose in the short run, K is fixed at K*. What's the solution to the firm's short run cost-minimization problem? 2) What is the solution to the firm's long run cost minimization problem given that the firm wants to produce Q units of output? 3) Suppose that Q = 10,K* = 20. Compare the long...
Question 1 Sachith CADs production function for a given level of technology is given by q 0.25K0.25L0.75. Where q is the amount of prints per hour. Suppose the rental rate per printing machine...
Question 1 Sachith CADs production function for a given level of technology is given by q 0.25K0.25L0.75. Where q is the amount of prints per hour. Suppose the rental rate per printing machine is $52 per hour, and labor can be hired at $12 per worker hour. The company has allocated $150,000 for the initial run of prints. a. Calculate marginal products of labor and capital. b. Determine the firm's optimal capital-labor ratio (labor on the x axis) c. Construct...
Suppose a pie factory’s production function is Q=2KLQ=2KL, where Q is the quantity of pies produced...
Suppose a pie factory’s production function is Q=2KLQ=2KL, where Q is the quantity of pies produced each hour, K is the number of ovens used, and L is the number of workers per hour. If KK is fixed at 5 units, what is the firm’s total product of labor equation (i.e., its short-run production function)? Assume 3 units of labor are employed with the 5 units of capital. If production achieves technological efficiency, how many pies are produced per hour?...
Suppose a firm has the production function Q = 50KL with MP, = 50K and MP, = 50L . 1) If the wage rate is $10 per unit of labor and the rental rate of capital is $5 per unit of capital, how much capital and labor should the firm employ in the long run to minimize the cost of producing 40,000 units? 2) Using the solution in part 1), what will the firm's long-run total cost be?
A firm produces gizmos according to the production function Q=10KL, where is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How many workers should...
Problem 1 Your firm produces output of some generic manufactured good Q according to the following production function: Q(L,K) = 2L1/451/2 Assume the wage paid to labor is $10, the rental rate of capital is $40, and the price of your product is $200. (a) What is the technical rate of substitution for this production function? (b) Suppose you have 80 units of capital in the short run. Find the profit maximizing amount of labor you should employ. (c) Find...
5. Suppose a firm has the production function Q=K1/2 [4M1/4 The wage rate w=16, rental rate r=2, and the price of the materials m=1. 1) Suppose in the short run, K is fixed at K*. What's the solution to the firm's short run cost-minimization problem? 2) What is the solution to the firm's long run cost minimization problem given that the firm wants to produce Q units of output? 3) Suppose that Q = 10,K* = 20. Compare the long...
Question 1 Sachith CADs production function for a given level of technology is given by q 0.25K0.25L0.75. Where q is the amount of prints per hour. Suppose the rental rate per printing machine is $52 per hour, and labor can be hired at $12 per worker hour. The company has allocated $150,000 for the initial run of prints. a. Calculate marginal products of labor and capital. b. Determine the firm's optimal capital-labor ratio (labor on the x axis) c. Construct...
Most questions answered within 3 hours.
-
Potassium phosphate and calcium chloride react in a double
replacement reaction. To produce 1.0 moles of...
asked 1 minute ago -
Two identical flutes can play middle C (262 Hz) at 20◦C. How
many beats per second...
asked 6 minutes ago -
Sparky, Co. purchased land as a factory site for $600,000.
Sparky paid $42,000 to tear down...
asked 16 minutes ago -
A Chi-square distribution with 14 degrees of freedom is a
correct model for
Question 8 options:...
asked 45 minutes ago -
In a group of 45 mice, there are 10 that have a certain genetic
character. suppose...
asked 27 minutes ago -
Topic: Hydrogenic Atoms
The wavefunction of one of the d orbitals is proportional to sin
θ...
asked 27 minutes ago -
6. Suppose that the Bank of Canada conducts an open market
purchase of $2000 from a...
asked 42 minutes ago -
A) Suppose U=X∙Y3. Find X* and Y*.
B) Suppose U=X3∙Y. Find X* and Y*.
C) Suppose...
asked 50 minutes ago -
The only quantities of good 1 that Barbara can buy are 1 unit or
zero units....
asked 40 minutes ago -
c. Node Admittance matrix and its use in different calculations
of power transmission system. Display the...
asked 48 minutes ago -
Try to get the code down to less than 40 lines. (PYTHON)
import random
fave_number =...
asked 48 minutes ago -
2.
Regression analysis was applied between sales (in $1,000) and
advertising (in $100), and the following...
asked 56 minutes ago