Suppose that blueberries are produced using land and labor according to the following production function: where...
A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4. Instruction: Enter your responses rounded to three decimal places. a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. ____ What is the average product of labor when the firm uses 256 units of labor? ____ Instruction: The second response is the exponent on L in the...
Problem 05-01 A firm can manufacture a product according to the production function: Q=F(K.L) = 3/4 1/4 a. Calculate the average product of labor, AP, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. Instruction: Round your responses to 3 decimal places. What is the average product of labor when the firm uses 256 units of labor? b. Find an expression for the marginal product of labor, MP4, when the amount...
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...
Mark launders his white clothes using the production function q=2B +G, where B is the number of cups of Clorox bleach and G is the number of cups of a generic bleach, where Clorox bleach is two times as potent. Use the line drawing tool to graph an isoquant for output of q=8. Label this line 'isoquant'. Carefully follow the instructions above, and only draw the required object. What is the marginal product of B? The marginal product of B...
Mark launders his white clothes using the production function q = 4B+G where B is the number of cups of Clorox bleach and G is the number of cups of a generic bleach, where Clorox bleach is four times as potent. Use the line drawing tool to graph an isoquant for output of q = 28. Label this line isoquant'. Carefully follow the instructions above, and only draw the required object. What is the marginal product of B? G, Cups...
Suppose output, Y t, is produced using capital, K t, and labor, N t, according to the production function: Y t = A ⋅ ( K t α N t 1 − α + K t β N t 1 − β )where the parameters satisfy 0 < α < 1, 0 < β < 1 and A > 0. a) (5 pts) Write the production function in “per worker” terms. That is, if we define y t = Y...
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.
Consider the following Cobb Douglas production function, where =0.5 Q=KLP Find the equation for the isoquant when Q=4,000 16.000.000 (Property format your expression using the tools in the palette. Hover over fools to see keyboard shortcuts. Eg, a fraction can be created with the character.) The marginal rate of technical substitution (MRTS) when Q ) 4,000 and L - 100 (with capital measured on the vertical axis and labor measured on the horizontal 2 MRTS - (Enter a numeric response...
Consider the following Cobb-Douglas production function, where α Find the equation for the isoquant when Q 4,000. K-(Properly format your expression using the fools in the paiette. Hover over tools to see keyboard shortcuts Eg, a fraction can be created with the /character) The marginal rate of technical substitution (MRTS) when Q 4,000 and L-50 (with capital measured on the vertical axis and labor measured on the horizontal axis) is MRTS (Enter a numenic response using an integer)