Homework Answers
Add Answer to:
Q=F(X, X2. X3) Suppose that your manufacturing firm has the following production function with three inputs:...
Consider a production function of three inputs, labor, capital, and materials, given by Q= LKM
Consider a production function of three inputs, labor, capital, and materials, given by Q= LKM. The marginal products associated with this production function are as follows: MPL = KM, MPk = LM, and MPM = LK. Let w = 5, r = 1, and m = 2, where m is the price per unit of materials. (a) Suppose that the firm is required to produce Q units of output. Show how the cost-minimizing quantity of labor depends on the quantity Q....
Company A uses 3 inputs (x1,x2,x3) to produce output Q. Nothing is produced unless some amount...
Company A uses 3 inputs (x1,x2,x3) to produce output Q. Nothing is produced unless some amount of input X3 is utilized. At the current level of X3, the output Q is produced according to the production function Q = x11/2x21/2 Denote the input prices by (W1,W2,W3) and assume the level of X3 cannot be varied in the time period under consideration but that X1 and X2 can be varied to whatever levels the firm desires. 1. Derive this firm’s total...
Suppose a firm has the following production function: Q = 2K L. The marginal product of...
Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 2L, and the marginal product of labor is 2K. Assume that capital rents for $100 per unit per day, that labor can be hired for $200 per unit per day, and that the firm is minimizing costs. a. The firm will hire units of labor and - units of capital. b. What is the total cost of producing 60 units of output?...
Problem 4: A firm has the following production function: Xi , X2)=X1 , X2 A) Does this firm's tec...
Problem 4: A firm has the following production function: Xi , X2)=X1 , X2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Is the marginal product of input 1 increasing, constant, or decreasing in x1. Is the marginal product of input 2 increasing, constant, or decreasing in x2? D) Suppose the firm...
Question 4 (1 point) Suppose a firm has a production function given by Q = 2K...
Question 4 (1 point) Suppose a firm has a production function given by Q = 2K + L, where Lis labor, Kis capital and Q is the quantity of output. Which of the following statements is WRONG? The firm is exhibiting constant returns to scale The firm's marginal product of capital is constant The firm's marginal product of labor is constant The firm's marginal rate of technical substitution depends on the amount of inputs
Suppose a firm has a production function given by Q=2K+L, where L is labor, K is...
Suppose a firm has a production function given by Q=2K+L, where L is labor, K is capital and Q is the quantity of output. Which of the following statements is WRONG? A. The firm is exhibiting constant returns to scale B. The firm’s marginal product of capital is constant C. The firm’s marginal product of labor is constant D. The firm’s marginal rate of technical substitution depends on the amount of inputs
Problem 3: A firm has the following production function: f(x1,x2) = x7/3x4/3 A) Does this firm's...
Problem 3: A firm has the following production function: f(x1,x2) = x7/3x4/3 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Is the marginal product of input 1 increasing, constant, or decreasing in X1. Is the marginal product of input 2 increasing, constant, or decreasing in xz? D) Suppose the firm wants to...
Problem 2: A firm has the following production function: f(x1,x2) = x1 + x2 A) Does...
Problem 2: A firm has the following production function: f(x1,x2) = x1 + x2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) Suppose the firm wants to produce exactly y units and that input 1 costs $w1 per unit and input 2 costs $w2 per unit. What are the firm's conditional input demand functions? C) Write down the formula for the firm's total cost function as a function of w1, W2, and y.
Suppose a good is produced according to the following production function: Q = L1/2K1/2 so...
Suppose a good is produced according to the following production function: Q = L1/2K1/2 so that the marginal product of labor and capital are MPL = (1/2)(K/L)1/2 MPK = (1/2)(L/K)1/2 If w = $8 and r = $4, determine the necessary conditions for the input choices, K and E to be cost-minimizing. In other words, what is the cost-minimizing ratio of K to E for this firm? Your answer will be in the form of 2L: 5K. You...
Suppose you are given the following production function Q= 21x + 9x2-x3 Compose a table calculating...
Suppose you are given the following production function
Q= 21x + 9x2-x3
Compose a table calculating the Total Product (Q), Marginal
Product (MP) and Average Product (AP), for x ranging from 0 to 9
units.
Using the information from the table, graph these individual
curves and identify the rate of which diminishing marginal returns
are evident. Delineate the stages of production and
explain why Stages I and III are considered as
irrational whereas Stage II is termed as rational. What...
Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 2L, and the marginal product of labor is 2K. Assume that capital rents for $100 per unit per day, that labor can be hired for $200 per unit per day, and that the firm is minimizing costs. a. The firm will hire units of labor and - units of capital. b. What is the total cost of producing 60 units of output?...
Problem 4: A firm has the following production function: Xi , X2)=X1 , X2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Is the marginal product of input 1 increasing, constant, or decreasing in x1. Is the marginal product of input 2 increasing, constant, or decreasing in x2? D) Suppose the firm...
Question 4 (1 point) Suppose a firm has a production function given by Q = 2K + L, where Lis labor, Kis capital and Q is the quantity of output. Which of the following statements is WRONG? The firm is exhibiting constant returns to scale The firm's marginal product of capital is constant The firm's marginal product of labor is constant The firm's marginal rate of technical substitution depends on the amount of inputs
Problem 3: A firm has the following production function: f(x1,x2) = x7/3x4/3 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the firm's Technical Rate of Substitution? What is the optimality condition that determines the firm's optimal level of inputs? C) Is the marginal product of input 1 increasing, constant, or decreasing in X1. Is the marginal product of input 2 increasing, constant, or decreasing in xz? D) Suppose the firm wants to...
Problem 2: A firm has the following production function: f(x1,x2) = x1 + x2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) Suppose the firm wants to produce exactly y units and that input 1 costs $w1 per unit and input 2 costs $w2 per unit. What are the firm's conditional input demand functions? C) Write down the formula for the firm's total cost function as a function of w1, W2, and y.
Suppose you are given the following production function
Q= 21x + 9x2-x3
Compose a table calculating the Total Product (Q), Marginal
Product (MP) and Average Product (AP), for x ranging from 0 to 9
units.
Using the information from the table, graph these individual
curves and identify the rate of which diminishing marginal returns
are evident. Delineate the stages of production and
explain why Stages I and III are considered as
irrational whereas Stage II is termed as rational. What...
Most questions answered within 3 hours.
-
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 32 minutes ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 33 minutes ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 1 hour ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 1 hour ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 1 hour ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 1 hour ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 1 hour ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 1 hour ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 1 hour ago -
A marketing executive who knowingly authorizes a shoddy
defective product to be brought to market is...
asked 1 hour ago -
Write a psudocode:
1. Define a function called authorize that takes in 2 strings,
uName, and...
asked 1 hour ago -
What Hall voltage (in mV) is produced by a 0.180 T field applied
across a 2.60...
asked 1 hour ago