Production function: y= K^(1/2)L^(1/3) a) solve the cost minimization problem and find expressions for conditional labor...
Production function: y= K^(1/2)L^(1/3)
a) solve the cost minimization problem and find expressions for conditional labor demand and conditional capital demand
b)find the minimized cost function from a)
c)suppose that w=r=1 and suppose that fixed costs are equal to FC=4. find and plot average fixed costs, average variable costs, average total cost and marginal cost
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Production function: y= K^(1/2)L^(1/3)
a) solve the cost minimization problem and find expressions for
conditional labor...
Can someone help me please please Cost minimization For the production fuction is given by f(l, k...
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...
Can someone help me please please Cost minimization For the production fuction is given by f(l, k...
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...
Please solve and show full work for a rating. Thank you. Plastic bags are great 2) The production of plastic bags is gi...
Please solve and show full work for a rating. Thank you.
Plastic bags are great 2) The production of plastic bags is given by the production function q K is capital and L is labor. f(LK) s, where Short Run Production a. ) Find the expressions for the Marginal Product of Labor (MP) and Average Product of Labor (APL) in the Short Run, when K is fixed at 400. i) Derive L() in the Short Run, again with K fixed...
5. Consider a firm with the production function F(K,L) = (K^3/5)(L^1/5) (a) Setup and solve the...
5. Consider a firm with the production function F(K,L) = (K^3/5)(L^1/5) (a) Setup and solve the long run cost minimization problem for the long run optimal amount of capital K*(w,r,q) and labor L*(w,r,q), and the long run minimized cost C* (w,r,q). (Hint: reduce the cost function for the next part. (b) Setup and solve the profit maximization problem over quantity using the cost function you solved for in the previous part. Solve for the profit maximizing quantity q *(p,w,r), cost...
Question 1: Cost Minimization and Cost Curves Suppose that Jennifer produces good y by using input...
Question 1: Cost Minimization and Cost Curves Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x] The cost for every unit of xi is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express x1/x2 as...
4. Suppose the production function is equal to the following: Q = (√L)(K) Suppose the price...
4. Suppose the production function is equal to the following: Q = (√L)(K) Suppose the price of capital is equal to r, the price of labor is equal to w, and capital is fixed at 10 units. a) Determine the Cost function. b) Determine the marginal cost of producing an additional unit of output. c) Determine the average variable cost.
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
2) Consider the following production function for shirts: q=13/4K1/4, where L is worker-hours, and K is...
2) Consider the following production function for shirts: q=13/4K1/4, where L is worker-hours, and K is sewing machine-hours. The cost of one hour of labor L is w The cost of renting a sewing machine for one hour is r. What type of returns to scale does this production function have? a) b) Compute the marginal product of labor L and marginal product of capital K. What is the marginal rate of technical substitution of labor for capital .e. how...
Please solve and show full work for a rating. Thank you.
Plastic bags are great 2) The production of plastic bags is given by the production function q K is capital and L is labor. f(LK) s, where Short Run Production a. ) Find the expressions for the Marginal Product of Labor (MP) and Average Product of Labor (APL) in the Short Run, when K is fixed at 400. i) Derive L() in the Short Run, again with K fixed...
Question 1: Cost Minimization and Cost Curves Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x] The cost for every unit of xi is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express x1/x2 as...
11. Consider the production function: f(K,L)=K+L. Let w and r denote the price of labor and capital, and let p denote the price of the output good. (a) Find the cost minimizing input bundle and the cost function. (b) Find the profit maximizing output level and the profit function. 12. Consider a firm with production function f(K,L) = K +L. (a) Suppose that capital level is currently fixed at K = 10. Find the short term production cost function for...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
2) Consider the following production function for shirts: q=13/4K1/4, where L is worker-hours, and K is sewing machine-hours. The cost of one hour of labor L is w The cost of renting a sewing machine for one hour is r. What type of returns to scale does this production function have? a) b) Compute the marginal product of labor L and marginal product of capital K. What is the marginal rate of technical substitution of labor for capital .e. how...
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