ZuoTi.Pro
Question

) A firm produces output that can be sold at a price of $10. The Cobb-Douglas...

) A firm produces output that can be sold at a price of $10. The Cobb-Douglas production function is given by Q = F(K,L) = K½ L½ If capital is fixed at 1 unit in the short run, how much labor should the firm employ to maximize profits if the wage rate is $2?

business   Operations-Management   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
) A firm produces output that can be sold at a price of $10. The Cobb-Douglas...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • * A firm produces output that can be sold at a price of $10. The Cobb-Douglas...

    * A firm produces output that can be sold at a price of $10. The Cobb-Douglas production function is given by Q = F(K,L) = K½ L½      If capital is fixed at 1 unit in the short run, how much labor should the firm employ to maximize profits if the wage rate is $2? * Given the Cobb-Douglas production function for Mabel’s factory Q = (L0.4) * (K0.7) a) Based on the function above, does Mabel’s factory experiencing economies...

  • Problem 1 Your firm produces output of some generic manufactured good Q according to the following...

    Problem 1 Your firm produces output of some generic manufactured good Q according to the following production function: Q(L,K) = 2L1/451/2 Assume the wage paid to labor is $10, the rental rate of capital is $40, and the price of your product is $200. (a) What is the technical rate of substitution for this production function? (b) Suppose you have 80 units of capital in the short run. Find the profit maximizing amount of labor you should employ. (c) Find...

  • A firm produces output Q by using capital K and labor L in fixed proportions, i.e....

    A firm produces output Q by using capital K and labor L in fixed proportions, i.e. Q = F (K ,L ) = min {K, L/3}. The price of a unit of labor is w = 6, the price of a unit of capital is r = 2 and the price of output is p = 20. a) Draw the isoquant for Q = 8. b) Find the marginal product of labor. Suppose that (in part c and d) the...

  • suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of...

    suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. assuming no fixed cost, what is the firm's total cost of production if it uses least-cost input combination to produce 675 units of output?

  • A firm production is represented by the following Cobb-Douglas function: Q=K1/4L3/4 The rental rate, r, of...

    A firm production is represented by the following Cobb-Douglas function: Q=K1/4L3/4 The rental rate, r, of capital is given by $100 and the price of labor w is $200. a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs? b. How much capital and labor should be used to produce 300 units? c. What is the minimum cost of producing 300 units? d. What is the additional cost of...

  • Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L...

    Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...

  • suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of...

    suppose a firm has a cobb-douglas weekly production function q=f(l,k)=25l^.5k^.5, where l is the number of workers and k is units of capital.mrtslk is k/l. the wage rate is $900 per week, and a unit of capital costs $400 per week. what is the least cost input combination for producing 675 units of output?

  • 3. The White Noise Corporation has estimated the following Cobb-Douglas production function using monthly observations for...

    3. The White Noise Corporation has estimated the following Cobb-Douglas production function using monthly observations for the past two years: ln Q = 1.386 + 0.20 ln K + 0.30 ln L + 0.25 ln N where Q is the number of units of output, K is the number of units of capital, L is the number of unit of labor, and N is the number of units of raw materials. With respect to the above results, answer the following...

  • A firm has a Cobb-Douglas production function of Q = K^(0.25) L^(0.75) (a) Does this production...

    A firm has a Cobb-Douglas production function of Q = K^(0.25) L^(0.75) (a) Does this production technology exhibit increasing, constant, or decreasing returns to scale? (b) Suppose that the rental rate of capital is r = 1, the wage rate is w = 1, and the ?rm wants to produce Q = 3. In the long-run, what combination of L and K should they use? (It would be good to practice doing this with the Lagrangian, even if you can...

  • A firm has a Cobb-Douglas production function q = AKL, where K denotes capital, L is...

    A firm has a Cobb-Douglas production function q = AKL, where K denotes capital, L is labor, and A, a, b, are constants. ginal returns to labor in the short run if its production function is 1. Sketch an isoquant line, write a mathematical formula for its slope, and provide an interpretation for its meaning. 2. On a separate graph, draw an isocost line, write a mathematical formula for its slope, and provide an interpretation for its meaning. 3. On...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT