Please answer this short question
Consider production function: f(K,L)=2K0,5L0,5. K denotes capital and L denotes labour. Let r and w be the prices of capital and labour respectively. Calculate the long run conditional factor demands, that is the long run demand for K & L given that the firm must produce a certain level of output, y.
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A firm has a production function Y = 2 Ko5L05 use w to denote the wage...
A firm has a production function Y = 2 Ko5L05 use w to denote the wage rate and r to denote the capital rental price. Let us first consider the short run situation, where the firm has K = 25 and r = 2. In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? a. b. Let us first consider the short run...
A firm has a production function Y 2 K05L05. Use w to denote the wage rate...
A firm has a production function Y 2 K05L05. Use w to denote the wage rate and r to denote the capital rental price Let us first consider the short run situation, where the firm has K = 25 and In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? Let us first consider the short run situation, where the firm has K-25....
6. The production function of a firm is y = LIR. Labour is paid a wage,...
6. The production function of a firm is y = LIR. Labour is paid a wage, w = 1 and capital earns a rental rate, r = 2. (a) Derive the long-run conditional factor demands for L and K. (b) Derive the long-run cost function C(y). (c) If the firm operates in a competitive industry, p=me. Derive the long-run supply curve for the firm, y(p).
6. The production function of a firm is y = LIKt. Labour is paid a wage,...
6. The production function of a firm is y = LIKt. Labour is paid a wage, w = 1 and capital earns a rental rate, r = 2. (a) Derive the long-run conditional factor demands for L and K. (b) Derive the long-run cost function C(y). (c) If the firm operates in a competitive industry, p = mc. Derive the long-run supply curve for the firm, y(p).
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital...
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital (K). The firm's production function is Q f(L, K) = min{L, K}}. The per-unit price of labor is w = 1 and the per-unit price of capital is r = 1. Recently, the government imposed a tax on Julia's firm: For each unit of labor that Julia employs, she must pay a tax of £t to the government. (a) Graph the Q unit of...
1. Consider the production function y = f(L,K) for a firm in a competitive market setting. The price of the outpu...
1. Consider the production function y = f(L,K) for a firm in a competitive market setting. The price of the output good is p > 0. The prices of the inputs Labour and Capital are w> 0 and r>0 respectively. The firm chooses L and K in order to maximize profits, (L.K). (a) How does the short-run production function differ from the long-run production function? (b) Write out the profit function for the firm, (L,K). (c) Derive the first order...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
Only question b and f need aid Question B1 Where x is an output produced using...
Only question b and f need aid
Question B1 Where x is an output produced using inputs labour (l) and capital (k) a) Do the following production functions exhibit decreasing, constant, or increasing returns to scale? Explain your answers (2 marks each) - x = 5070.3k0.3 x = 2020.45 k0.55 x = 570.610k0.6 Suppose our price-taking and wage-taking firm can produce a single output x using inputs labour (l) and capital (k) according to the production function: x = f(1,k)...
2. To produce 18 units of output a firm can hire either 9 workers or 3...
2. To produce 18 units of output a firm can hire either 9 workers or 3 machines. a. Let L denote workers and K denote machines. Write down a production function that represents this firm's production technology. (2 points) b. Let w denote the wage rate and r denote the rental rate of capital. Suppose wir = 0.4. Derive the firm's long run factor demand functions for labor and capital and the firm's long run cost function. (4 points) C....
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital,...
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function as a function of w., and q. (b) Find the profit maximizing output level and the profit as a function of w, r, and p. 11. Consider the production function: f(KL)=K+L. Let w and r denote the price of labor and capital, and...
A firm has a production function Y = 2 Ko5L05 use w to denote the wage rate and r to denote the capital rental price. Let us first consider the short run situation, where the firm has K = 25 and r = 2. In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? a. b. Let us first consider the short run...
A firm has a production function Y 2 K05L05. Use w to denote the wage rate and r to denote the capital rental price Let us first consider the short run situation, where the firm has K = 25 and In order to produce 10 units of output, how many units of labour does the firm need to hire? What is the average cost of the firm? Let us first consider the short run situation, where the firm has K-25....
6. The production function of a firm is y = LIR. Labour is paid a wage, w = 1 and capital earns a rental rate, r = 2. (a) Derive the long-run conditional factor demands for L and K. (b) Derive the long-run cost function C(y). (c) If the firm operates in a competitive industry, p=me. Derive the long-run supply curve for the firm, y(p).
6. The production function of a firm is y = LIKt. Labour is paid a wage, w = 1 and capital earns a rental rate, r = 2. (a) Derive the long-run conditional factor demands for L and K. (b) Derive the long-run cost function C(y). (c) If the firm operates in a competitive industry, p = mc. Derive the long-run supply curve for the firm, y(p).
- Julia operates a cost-minimizing firm that produces a single output using labor (L) and capital (K). The firm's production function is Q f(L, K) = min{L, K}}. The per-unit price of labor is w = 1 and the per-unit price of capital is r = 1. Recently, the government imposed a tax on Julia's firm: For each unit of labor that Julia employs, she must pay a tax of £t to the government. (a) Graph the Q unit of...
1. Consider the production function y = f(L,K) for a firm in a competitive market setting. The price of the output good is p > 0. The prices of the inputs Labour and Capital are w> 0 and r>0 respectively. The firm chooses L and K in order to maximize profits, (L.K). (a) How does the short-run production function differ from the long-run production function? (b) Write out the profit function for the firm, (L,K). (c) Derive the first order...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
Only question b and f need aid
Question B1 Where x is an output produced using inputs labour (l) and capital (k) a) Do the following production functions exhibit decreasing, constant, or increasing returns to scale? Explain your answers (2 marks each) - x = 5070.3k0.3 x = 2020.45 k0.55 x = 570.610k0.6 Suppose our price-taking and wage-taking firm can produce a single output x using inputs labour (l) and capital (k) according to the production function: x = f(1,k)...
2. To produce 18 units of output a firm can hire either 9 workers or 3 machines. a. Let L denote workers and K denote machines. Write down a production function that represents this firm's production technology. (2 points) b. Let w denote the wage rate and r denote the rental rate of capital. Suppose wir = 0.4. Derive the firm's long run factor demand functions for labor and capital and the firm's long run cost function. (4 points) C....
10. Consider the production function: f(KL)=K L. Let wandr denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function as a function of w., and q. (b) Find the profit maximizing output level and the profit as a function of w, r, and p. 11. Consider the production function: f(KL)=K+L. Let w and r denote the price of labor and capital, and...
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