Consider a firm which produces according to the following production function just by using labor
Consider a firm which produces according to the following production function just by using labor
f(L) = 4L^1/2 + k
(a) Derive the short-run total cost, the short-run average cost, the shortrun marginal cost function of the firm under the assumption that capital is the fixed input.
(b) Find short-run firm supply as a function of input prices, w and r, and output price, p.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Consider a firm which produces according to the following production function just by using labor
1. Consider a firm which produces according to the following production function by using labor and...
1. Consider a firm which produces according to the following production function by using labor and capital: f(1,k) = klid (e) Suppose the wage rate of labor is 2 TL, the rental rate of capital is 2 TL and fixed capital input, k, is 2 units. What amount of output minimizes short-run average cost? What is the minimum possible short-run average cost? (f) Find short-run firm supply as a function of input prices, w and v, and output price, p....
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...
1. The production function of a firm is f(1,k) = Vlk where l is labor and...
1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
Consider a firm using two inputs; capital (K) and labor (L) in production. The firm's production...
Consider a firm using two inputs; capital (K) and labor (L) in production. The firm's production technology is characterized by the following production function: Q = F(K, L) = 40K L In the short run (SR), the quantity of the capital (K) that the firm uses is fixed at K = 10 whereas the quantity of the labor input can be varied. Price of labor is $4,000 per worker and the price of capital is $2,000 per capital. (PL=$4,000 and...
5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK...
5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK . In the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental rate of capital is r=$1, and the wage rate of labor is w=$4. a. Derive the firm's short-run total cost curve. What is the short-run average total cost? What is the short-run average variable cost? b. Find the short-run marginal cost function. What are the total...
2. A firm produces a product with labor and capital. Its production function is described by...
2. A firm produces a product with labor and capital. Its production function is described by Q = L1/2K1/2 The price of labor is w = 1, while that of capital is r = 4. (a) What is the cost-minimizing input bundle when Q = 60? (b) What is the cost-minimizing input bundle when = 30? (c) The desired output level falls from -60 to Q = 30, what is the new long-run cost-minimizing input bundle? (d) In the short-run,...
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...
A firm produces toasters using capital (K) and labor (L). The price of capital is r...
A firm produces toasters using capital (K) and labor (L). The price of capital is r > 0 and the price of labor is w > 0. The quantity Q of toasters produced is given by the function: Q = f(L, K) = L^(1/2) K^(1/3) (a) What type of returns to scale does the firm have? (b) Assume that the firm minimizes costs and that all factors are variable . i. Explain the conditions that hold when the plant produces...
Please solve and show full work for a rating. Thank you. Plastic bags are great 2) The production of plastic bags is gi...
Please solve and show full work for a rating. Thank you.
Plastic bags are great 2) The production of plastic bags is given by the production function q K is capital and L is labor. f(LK) s, where Short Run Production a. ) Find the expressions for the Marginal Product of Labor (MP) and Average Product of Labor (APL) in the Short Run, when K is fixed at 400. i) Derive L() in the Short Run, again with K fixed...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is ....
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...
1. Consider a firm which produces according to the following production function by using labor and capital: f(1,k) = klid (e) Suppose the wage rate of labor is 2 TL, the rental rate of capital is 2 TL and fixed capital input, k, is 2 units. What amount of output minimizes short-run average cost? What is the minimum possible short-run average cost? (f) Find short-run firm supply as a function of input prices, w and v, and output price, p....
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...
1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK . In the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental rate of capital is r=$1, and the wage rate of labor is w=$4. a. Derive the firm's short-run total cost curve. What is the short-run average total cost? What is the short-run average variable cost? b. Find the short-run marginal cost function. What are the total...
2. A firm produces a product with labor and capital. Its production function is described by Q = L1/2K1/2 The price of labor is w = 1, while that of capital is r = 4. (a) What is the cost-minimizing input bundle when Q = 60? (b) What is the cost-minimizing input bundle when = 30? (c) The desired output level falls from -60 to Q = 30, what is the new long-run cost-minimizing input bundle? (d) In the short-run,...
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...
Please solve and show full work for a rating. Thank you.
Plastic bags are great 2) The production of plastic bags is given by the production function q K is capital and L is labor. f(LK) s, where Short Run Production a. ) Find the expressions for the Marginal Product of Labor (MP) and Average Product of Labor (APL) in the Short Run, when K is fixed at 400. i) Derive L() in the Short Run, again with K fixed...
4. A firm produces computers with two factors of production: labor L and capital K. It's pro- duction function is . Suppose the factor prices are wl = 10 and wK = 100. (a) Graph the isoquants for y equal to 1.2, and 3. Does this technology show increasing, constant, or decreasing returns to scale? Why? (b) Derive the conditional factor demands. (c) Derive the long-run cost function C(y). (d) If the firm wants to produce one computer, how many...
Most questions answered within 3 hours.
-
Please write 6 to 10 paragraphs on the risks associated with
digging an underground hole.
Write...
asked 24 seconds ago -
The function x = (7.9 m) cos[(4πrad/s)t + π/3 rad] gives the
simple harmonic motion of...
asked 1 minute ago -
A sample of steam with a mass of 0.501 g at a temperature of 100
∘C...
asked 34 minutes ago -
I1(t) and I2(t) describe the intensity of two
light waves.
I1(t)= 10sin(30t+π/4)
I2(t)=
10sin(30.4t+π)
Assume that...
asked 28 minutes ago -
True or False: Spinal nerves emerging from the vertebral column
are ONLY motor OR sensory.
Select...
asked 15 minutes ago -
last question i found wrong so downvoted so dont copy
paste or dont try if you...
asked 11 minutes ago -
A block sits on the floor. (a) What is the magnitude of the
frictional force on...
asked 35 minutes ago -
Thanks so much for the help! Please show all work.
A uniform solid disk with radius...
asked 15 minutes ago -
Please use Logicly!
Create a 4 bit sequential counter that is capable of counting up
or...
asked 23 minutes ago -
state one specific part from disability law such as ADA
(Americans with Disability Acts) or policy...
asked 36 minutes ago -
please simplify how vapor pressure lowering is related to a
rise in the boiling point solution
asked 50 minutes ago -
write a java program that does the following
Part one
Use a For loop to compute...
asked 48 minutes ago