ZuoTi.Pro
Question

Imagine you work for a firm that only utilizes labor and capital as inputs and has a CES production function: q-f(L,K) L+ Kj2

Please answer E-J not A-D

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

e tk Production function : q=1+k] In the short rum k=k :9:9 [112 + (R)Y av, zq4z = [2 + (R)? ir, 2qV2 - K 12 = LY? TC = we trzwith e pui Jowkz AW-97 36 m2 (9w-9p)2 Derived labor demand is: - p. MPL - W ay p.729 11 [+k] = w an eine [ H+ (x3)%] -W a,g. price elasticity of supply ... aq5 e -9x36 w²kx (-2). Pas p 18x36 me 14w ago 36 w3K (Aw-gpje for 4wzap - 18 € 30 4w -9 perja Price elasticity of labor demand - - 2x4 BHR (4w-ap) SLER (46,90T2 -ow so Aw-ap. This implies percentage change in labor da expo 2 = elp -4kw P - (aw-apje 818 p (aw-goge - u 20 뾿 As The also price rises; supply rises, labor being derived demand in

0 0
Add a comment
Know the answer?
Add Answer to:
Please answer E-J not A-D Imagine you work for a firm that only utilizes labor and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of...

    QUESTION 5 The marginal product for labor is given (MP) = 3 – 0.02*L; price of the product is $100 and wage = 200.  Based on information above, the marginal product of labor at the optimal level of employment is $3 $2 $1.5 $1 2 points    QUESTION 6 If the labor elasticity of output is 0.5 and the capital elasticity of output is 0.9, then the production function exhibits constant returns to scale. economies of scale. diseconomies of scale. diminishing...

  • A firm discovers that when it uses K units of capital and L units of labor,...

    A firm discovers that when it uses K units of capital and L units of labor, it is able to produce X = L^1/4*K^3/4 units of output. a. Draw the graph of isoquants in labor-capital plane. b. Suppose that the firm produces 24 units of output using 16 units of capital and 81 units of labor. Compute MRTS subscript LK. Compute the MPL. Compute the MPK. c. On the basis of your answer to part (b), is the equation MRTS...

  • Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2...

    Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2 where q is output, L is labor, and K is capital. Use this production function to answer the following questions. (a) What is the marginal product of labor (MPL)? (b) Does the MPL follow the law of diminishing returns? How do you know? (c) What is the marginal product of capital (MPK)? (d) Does the MPK follow the law of diminishing returns? How do...

  • In positive economic models of the labor market, it is assumed that workers maximize utility (happiness)....

    In positive economic models of the labor market, it is assumed that workers maximize utility (happiness). firms maximize profits. resources are scarce. all of these are true. 2 points    QUESTION 13 Because of the principle of __________, marginal product of labor decreases as labor increases. economies of scale. diseconomies of scale. diminishing returns. constant returns to scale. 2 points    QUESTION 14 The unemployment rate is computed as the number of employed divided labor force. the number of unemployed...

  • b) How much output should the monopolist produce in order to maximize profit? c) How much...

    b) How much output should the monopolist produce in order to maximize profit? c) How much labor should the firm hire to produce this output? d) How Much Capital should the firm hire?   e) What price should the monopolist charge? f) What is the deadweight loss? g) What is the Price Elasticity of Demand at the profit-maximizing price and quantity? 3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...

  • Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK...

    Acme produces anvils using labor (L) and capital (K) according to the production function Q= f(L,K)=LK with associated marginal products MPL=K, MPK =L. The price of labor is w=2 and the price of capital is r=1. Does Acme's production function for anvils exhibit increasing, constant or decreasing returns to scale? Justify your answer

  • Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two...

    Consider a competitive firm that produces bots. Labor (L) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage (w), and each unit of capital is rented at the rental price of capital (r). Output (Y) is therefore a function of labor and capital, or Y = f (K, L), and is sold at the market price (P). The goal of this firm is to maximize profit given the price of...

  • You are an efficiency expert hired by a manufacturing firm that uses K and L as...

    You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w (price of labor) = $40, r (price of capital) = $100, MPL = 20, and MPK = 40 is the firm minimizing cost? Please explain and show any calculations. (b) The production function for a competitive firm is Q = K0.5L0.5. The firm sells its output at a price of $10 and can...

  • Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function...

    Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function of the form: q = 5LK+K+L where q is units per day, L is units of labor input and K is units of capital output. The marginal product of the two inputs are: MPL = 5K+1, MPK = 5L +1. Price per unit of labor: w= $15, price per unit of capital: v= $15. Both labor and capital are variable. a. Write down the...

  • Please show all work. Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two...

    Please show all work. Problem #3: Long-Run Labor Demand and Factor Substitutability Suppose there are two inputs in the production function, labor (L) and capital (K), which carn be combined to produce Y units of output according to the following production function: Y = 30K + 10L The firm wants to produce 600 units of output. 1. Draw the isoquant that corresponds to that level of production (600 units) in a graph that has L on the horizontal axis and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT