) Suppose the production function is q = 12 K.5L.5
. Calculate the MRTS (MPK/MPL) when: a) K = 200, L = 300 b) K = 50, L = 400 c) K= 900, L = 2000
) Suppose the production function is q = 12 K.5L.5 . Calculate the MRTS (MPK/MPL) when:...
Use calculus to find the MPK and MPL Find the Slope of the Isoquant Production Function: Q=50+6L-.5L^2+22K-.25K^2
Suppose the firm's production function is given by q= F(K, L)= K2L with MPL=K2, MPK=2KL The price per unit of capital is 10 and the price per unit of labor is 5. Find the cost minimizing quantity of labor to produce 500,000 units of output. Please round to the closest integer.
The production function of the Auto parts firm is given by Q-5L-L, where Q is the units of output and L is the number of labor hours. Each output sells for 100 dollars per unit. The human resources manager estimates that the marginal cost of hiring an extra worker is 50 dollars. How many labor hours should this firm hire? Hint: MPL=5-2 L 1) 2) A frim's production function is given by Q(L)-6L, where Q measures output and L is...
1. Suppose the production of digital cameras is characterized by the production function q F(K, L)- KL (MPL = K, MPK = L), where q represents the number of digital cameras produced. Suppose that the price of labor is $10 per unit and the price of capital is S1 per unit. (a) Graph the isoquant for q-121 000. (b) On the graph you drew for part a), draw several isocost lines including one that is tangent to the isoquant you...
(a) Consider the production function, q = 100K2L1.5 Calculate the marginal product of labor, MPL, and the marginal product of capital,MPK. (c) Suppose that in the short run, the level of capital is fixed at K = 15. Write out the total product of labor curve. What is the marginal product of labor when L = 100? (d) Now consider two input combinations, (K = 5, L = 100) and (K = 20, L = 25). Which of the two...
1. Suppose the production function is given by Q = LK, where MPL = K and MPK = L. The level of output Q = 100 and both wage and interest rates are equal to one, so that w== a) Given that the wage increases to 4, determine the elasticity of demand for labour at the new wage. Indicate whether the wage bill will increase or decrease as wage increases to 6. b) Find the linear demand function for labour...
A firm has the production function Q= 4LK. The marginal products are given by MPL = 4K and MPK= 4L. Suppose that the prices of labour and capital are given by w and r. Solve for the quantities of L and K that minimize the cost of producing Q units of output. Provide an expression for the long run total cost function. What returns to scale are exhibited by this production function? What economies of scale are exhibited? Show the...
Suppose a firm has a production function given by Q = L1/2 K1/2. Therefore, MPL = K1/2 / 2L1/2 and MPK = L1/2 / 2K1/2 The firm can purchase labor, L at a price w = 36, and capital, K at a price of r = 9. a) What is the firm’s Total Cost function, TC(Q)? b) What is the firm’s marginal cost of production?
1. Suppose the production function is given by Q = LK, where MPL = K and MPK - L. The level of output Q = 100 and both wage and interest rates are equal to one, so that war- a) Given that the wage increases to 4. determine the elasticity of demand for labour at the new wage. Indicate whether the wage bill will increase or decrease as wage increases to 6. b) Find the linear demand function for labour...
For each of the following production functions calculate the ( MRTS v L,K ) a. Q = L^2/3 K^1/3 when Q=8 b. Q = 3L + K when Q=3 c. Q = min{3L, K} when Q=3