A perfectly competitive firm's production function is Q=17LK where Q is the amount produced, L is...
A perfectly competitive firm's production function is Q=17LK where Q is the amount produced, L is the amount of labour hired and K is the amount of capital used. P is the price that the firm gets for its product. What is the marginal revenue product of labour?
Homework Answers
Ans) Marginal revenue product of labor = 17KP
marginal revenue product of labor = price * marginal product
Marginal product = dQ/dL = 17K
Marginal revenue product of labor = P*17K
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A perfectly competitive firm's production function is Q=17LK
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Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical...
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Suppose the firm's production function is Q = 2KL where Q is units of output, K...
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A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor...
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a firm in perfectly competitive market sells all its products Q at constant price p (1)A...
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A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor...
A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
4. Suppose that a firm's production function is q = 10KiL, The Marginal Products of Capital and Labour are therefore as follows. The firm can rent capital (K) and hire labour (L) at competitive rates. The cost of a unit of labour is 20 and the cost of a unit of capital is 80. (a) Write down the equation for the isocost curve. 0o iad the cos minimisi q0i (c) What is the minimum total cost (C) associated with producing...
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A monopolist has a production function 27 (L-2)(K+1) Q(L,K) where L, Kis the amount of labor and capital. The wage rate is denoted by w and the rental rate of capital is denoted by r. The inverse demand function the monopolist is faced with is given by P = 12- 3Q where P is the market price and Q is the quantity sold. 13. Write down the optimization problem of the monopolist. 14. Write down the first order condition(s) 15....
(d) A perfectly competitive firm has the following production function: Q=L The price of labor is equal to w. If the firm maximizes profit and the price, p, is equal to 4w, then the firm will supply 2 units of output and profit is equal to 4w.
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a firm in perfectly competitive market sells all its products
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(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
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