Suppose we have a production function Q = 16.7K - K^2. If marginal revenue is $10,...

Question

Question

Suppose we have a production function Q = 16.7K - K^2. If marginal revenue is $10, what is the marginal revenue product of capital when K=4.

Hint: Round your answer to two decimal places.

Answer 1

Answer #1

Answer

marginal produc is change in total product and found by differentiating production function

MPK=dQ/dK=16.7-2K

K=4

MPK=16.7-2*4

MPK=8.7

MRPK=MPK*MR

MRPK=8.7*4

MRPK=34.8

the marginal revenue product of capital when K=4 is $34.80

Answer 2

Similar Homework Help Questions

Question 4 O out of 10 points Suppose we have a production function Q = 5.2K-K2....

Question 4 O out of 10 points Suppose we have a production function Q = 5.2K-K2. If marginal revenue is $15, what is the marginal revenue product of capital x when K=2 Hint: Round your answer to two decimal places. 42 Selected Answer: Response Feedback: Revenue the discussion about marginal revenue product on pages 149 - 154 of your text.
Suppose the production function for a firm is given by: q-2L *4K. If the firm currently...

Suppose the production function for a firm is given by: q-2L *4K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSx) (Round to the nearest fwo decimal places if necessary) Answer Suppose the production function for a firm is given by: q-4L K 25 If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal...
In-class exercise: finding total and marginal product. .Suppose the production function is .f(L, K) LK +...

In-class exercise: finding total and marginal product. .Suppose the production function is .f(L, K) LK + K What is the marginal product of capital (in general)? axy+y Hint: = x + 1 ay What is the marginal product of capital when (L, K)-(10, 10)? ns What is the total product when (L, K)-(10, 10)? Show All ा 29

Suppose that the production function is Y = 9 60.500.5 With this production function, the marginal...

Suppose that the production function is Y = 9 60.500.5 With this production function, the marginal product of labor is MPN = 4.5 K.5/10.5 The labor supply curve is NS = 105 x[(1 – t)xw], where w is the real wage rate, t is the tax rate on labor income, and hence (1 – t) xw is the after-tax real wage rate. The capital stock is K = 25. Assume that the tax rate on labor income, t, equals zero...
Suppose the production function for a firm is given by: q 8L +2K. If the firm...

Suppose the production function for a firm is given by: q 8L +2K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSL). (Round to the nearest two decimal places if necessary.) Answer:
Suppose that the production function takes the form Q=L-0.7L^2. In addition, marginal revenue is $10 and...

Suppose that the production function takes the form Q=L-0.7L^2. In addition, marginal revenue is $10 and marginal cost is $1. The optimal number of hours of labor is ___.

Suppose the production function for a firm is given by: q=2L +4K. If the firm currently...

Suppose the production function for a firm is given by: q=2L +4K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTS). (Round to the nearest two decimal places if necessary.) Answer:
0.5,,0.25 Suppose the production function for a firm is given by: q-4L If the firm currently...

0.5,,0.25 Suppose the production function for a firm is given by: q-4L If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTS). (Round to the nearest two decimal places if necessary.) Answer
Suppose the production function for a firm is given by: q=4L0.5K0.25. If the firm currently has...

Suppose the production function for a firm is given by: q=4L0.5K0.25. If the firm currently has 10 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK). (Round to the nearest two decimal places if necessary.)

Suppose the linear production function is given by Q= 4K + 8L What is the marginal...

Suppose the linear production function is given by Q= 4K + 8L What is the marginal product of capital when the firm uses 10 units of capital and 10 units of labor? What is the AP of labor if 3 units of capital and 5 units of labor are used?