A firm has the following production function Q= √KL Where Q is output per week and...
A firm has the following production function Q= √KL Where Q is output per week and K and L are units of capital and labor per week. If rental price of capital v= 100 per week and the wages w = 400 per week obtain the quantity of K and L that min the cost for Q = 10.
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A firm has the following production function Q= √KL Where Q is
output per week and...
A firm has a production function q = KL, where q is the quantity of output,...
A firm has a production function q = KL, where q is the quantity of output, K is the amount of capital and L is the amount of labor. a) Does this production function exhibit increasing, decreasing or constant returns to scale? b) Does the long-run cost function exhibit economies of scale or diseconomies of scale? c) Is the LR Average Cost curve increasing or decreasing with q?
Imagine that your firm has a production function given by Q = 2 KL, where K...
Imagine that your firm has a production function given by Q = 2 KL, where K is capital and L is labor. If capital rents for $100 per unit per day, labor can be hired for $200 per unit per day, and the firm is minimizing costs, a. What is the total cost of producing q units of output? b. What is the average cost of producing q units of output? c. What is the marginal of producing q units...
A firm has a production function of Q=20K^.2*L^.8 where Q measures output, K represents machine hours,...
A firm has a production function of Q=20K^.2*L^.8 where Q measures output, K represents machine hours, and L measures labor hours. If the rental cost of capital (r) equals $15 the wage rate (w) equals $10, and the firm wants to produce 40,000 units of output, how much labor and capital should the firm use?
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where...
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for the production function are MPK = L and MP, = K. The price of K is 4 and the price of L is 2. The firm is currently using K =16 and just enough L (you have to...
Derive the cost function associated with the production function in questions 2 is C(q) = 4...
Derive the cost function associated with the production function
in questions 2 is C(q) = 4 + 2q and in questions 3 is
C=wL+rK=1*8+2*4=16. The cost function is of the general form C(Q) =
xQ. What is the value of x?
2. The inverse market demand function is given by P()-20 q. Would consumers prefer to face a monopolist in this market with a cost function given by C(g)4+ 2q, or a perfectly competitive firm with a cost function given...
Tiffany's company has the production function Q=2K^0.5L^0.5, where Q measures output, K measures machine hours, and...
Tiffany's company has the production function Q=2K^0.5L^0.5,
where Q measures output, K measures machine hours, and L measures
labor hours. Let the wage rate be W, and suppose that the rental
rate of capital is R=$20 and the firm wants to produce 400 units of
output. Use the Lagrange method to find the demand curve for labor
as a function of the wage rate. Your answer will have L on the left
hand side of the equation. On the right...
Afir's production engineers have estimated its production function as Q(KL) = 2K2/1/2 = 2-K L=2KL where...
Afir's production engineers have estimated its production function as Q(KL) = 2K2/1/2 = 2-K L=2KL where ' and 'L' represent the amounts of capital and labour, respectively, used in production each period, and 'Q' represents the amount of output produced each period. The firm pays a wage, w, for each person-hour of labour of $16. The rental rate of a machine-hour of capital, wk, is $100. What will be the firm's minimum cost of producing 10 units of output? What...
A firm produces gizmos according to the production function Q =10KL , where Q is the...
A firm produces gizmos according to the production function Q =10KL , where Q is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How...
1. A firm operates in the long run. Its long-run production function is given as: Q...
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
The production function for homes is given by: Q = 5KL Where Q = output of...
The production function for homes is given by: Q = 5KL Where Q = output of homes per week K = capital L = work teams a. Assuming capital is fixed at K=5, how many labor teams does the firm need to hire if it wants to produce 100 homes ? b. If each labor team costs $500 and capital costs $100 per unit, how much will it cost them to produce 100 homes? c. If there are...
VILPELLO P IU points) 4. A firm produces an output with the production function Q=KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for the production function are MPK = L and MP, = K. The price of K is 4 and the price of L is 2. The firm is currently using K =16 and just enough L (you have to...
Derive the cost function associated with the production function
in questions 2 is C(q) = 4 + 2q and in questions 3 is
C=wL+rK=1*8+2*4=16. The cost function is of the general form C(Q) =
xQ. What is the value of x?
2. The inverse market demand function is given by P()-20 q. Would consumers prefer to face a monopolist in this market with a cost function given by C(g)4+ 2q, or a perfectly competitive firm with a cost function given...
Tiffany's company has the production function Q=2K^0.5L^0.5,
where Q measures output, K measures machine hours, and L measures
labor hours. Let the wage rate be W, and suppose that the rental
rate of capital is R=$20 and the firm wants to produce 400 units of
output. Use the Lagrange method to find the demand curve for labor
as a function of the wage rate. Your answer will have L on the left
hand side of the equation. On the right...
Afir's production engineers have estimated its production function as Q(KL) = 2K2/1/2 = 2-K L=2KL where ' and 'L' represent the amounts of capital and labour, respectively, used in production each period, and 'Q' represents the amount of output produced each period. The firm pays a wage, w, for each person-hour of labour of $16. The rental rate of a machine-hour of capital, wk, is $100. What will be the firm's minimum cost of producing 10 units of output? What...
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
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