Use production function: Q = K ^0.42 L^ 0.5 with Wage = 10, Rent = 6,...
Use production function: Q = K ^0.42 L^ 0.5 with Wage = 10, Rent = 6, output Price = $22/unit. To the nearest 0.01, what is the optimal quantity of Labor?
Homework Answers
Add Answer to:
Use production function: Q = K ^0.42 L^ 0.5 with Wage = 10, Rent
= 6,...
Priyanka's company has the production function Q=100K^0.5L^0.5, where Q measures output, K measures machine hours, and...
Priyanka's company has the production function Q=100K^0.5L^0.5, where Q measures output, K measures machine hours, and L measures labor hours. Suppose that the rental rate of capital is R=$30, the wage rate is W=$15, and the firm wants to produce 5,000units of output. Use the Lagrange method to find the optimal input mix. What the optimal level of K & L?
For a firm, assume the following: Production function is: Q = min(L, 3 K) Wage rate...
For a firm, assume the following: Production function is: Q = min(L, 3 K) Wage rate = 25 Rent = 80 Cost Outlay = 5,000 Part 1: What is the optimal amount of labour hired? Part 2: What is the optimal amount of capital employed? Part 3: What is the optimal amount of output produced?
On short notice, Dr. Ford creates automatons according to the following production function: Q(L,K)=10L1/2. The wage...
On short notice, Dr. Ford creates automatons according to the following production function: Q(L,K)=10L1/2. The wage of a programmer such as Elsie is $100 per hour and the price of each automaton is $2000. His capital costs $10000 per hour total. A. Find the profit function. B. How many hours will Dr. Ford employ Elsie, if he is maximizing profits. C. Now consider the long run in which Dr. Ford can choose how much capital to employ according to the...
For a firm, assume the following: Production function is: Q = min(L, 4 K) Wage rate...
For a firm, assume the following: Production function is: Q = min(L, 4 K) Wage rate = 30 Rent = 100 Cost Outlay = 9,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired? Part 2: What is the optimal amount of capital employed? Part 3: What is the optimal amount of output produced?
For a firm, assume the following: Production function is: Q = min(L, 2 K) Wage rate...
For a firm, assume the following: Production function is: Q = min(L, 2 K) Wage rate = 50 Rent = 90 Cost Outlay = 4,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired?Number Part 2: What is the optimal amount of capital employed? Number Part 3: What is the optimal amount of output produced?
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,...
Assume the following firm: Production function is: Q = min(L, 3 K) Wage rate = 45...
Assume the following firm: Production function is: Q = min(L, 3 K) Wage rate = 45 Rent = 60 Cost Outlay = 5,000 (Take all calculations to 2 decimal places) Part 1: What is the optimal amount of labour hired? ____________ Part 2: What is the optimal amount of capital employed? ____________ Part 3: What is the optimal amount of output produced? ____________
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 a production function Q=Q(K,L)=6K^(1/2)L^(1/3) with K as capital and L as labor input. Let the...
Consider a production function Q=Q(K,L)=6K^(1/2)L^(1/3) with K as capital and L as labor input. Let the price per unit of output be P=$0.50, the cost or rental rate per unit of capital be r=$0.10 and let the price (wage rate) of labor be w=$1. a) find the profit max level of K and L and check with second order condition (my answer was L=3.375 and K=1.5) b) Find max profit (I got profit=1.986)
Tiffany's company has the production function Q=2K^0.5L^0.5, where Q measures output, K measures machine hours, and...
Tiffany's company has the production function Q=2K^0.5L^0.5,
where Q measures output, K measures machine hours, and L measures
labor hours. Let the wage rate be W, and suppose that the rental
rate of capital is R=$20 and the firm wants to produce 400 units of
output. Use the Lagrange method to find the demand curve for labor
as a function of the wage rate. Your answer will have L on the left
hand side of the equation. On the right...
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....
Tiffany's company has the production function Q=2K^0.5L^0.5,
where Q measures output, K measures machine hours, and L measures
labor hours. Let the wage rate be W, and suppose that the rental
rate of capital is R=$20 and the firm wants to produce 400 units of
output. Use the Lagrange method to find the demand curve for labor
as a function of the wage rate. Your answer will have L on the left
hand side of the equation. On the right...
Most questions answered within 3 hours.
-
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 39 minutes ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 38 minutes ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 40 minutes ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 58 minutes ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 51 minutes ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 59 minutes ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 56 minutes ago -
if the magnitude of a velocity vector is 10m/s and it
makes an angle of 45...
asked 59 minutes ago -
Which amino acid has a basic R group?
A) tyrosine
B) Isoleucine
C) Glutamic Acid
D)...
asked 1 hour ago -
Is there the need for the government to have hackers. Please
share your thoughts.
asked 1 hour ago -
Explain why you should not lose any LDH activity when you
centrifuge a crude sample at...
asked 1 hour ago -
An AA battery (object), standing on end, is placed to the left
of a diverging lens...
asked 1 hour ago