ZuoTi.Pro
Question

A firm has the production function f(K,L)=4KL^1/2. The firm is currently using 16 units of labor...

A firm has the production function f(K,L)=4KL^1/2. The firm is currently using 16 units of labor and 2 units of capital. What is the firm's marginal product of capital?

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

Homework Answers

Answer #1

Marginal product of capital (MPk) = dQ / dK = d[f(K,L)] / dK = (4L^1/2* 1)+(4K*0) = 4L^1/2

If L = 16, MPk = 4(16)1/2 = 4*4 = 16

0 0
Add a comment
Know the answer?
Add Answer to:
A firm has the production function f(K,L)=4KL^1/2. The firm is currently using 16 units of labor...
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

  • Suppose the production function for a fim is given by: q4L05k 05. f the firm currently...

    Suppose the production function for a fim is given by: q4L05k 05. f the firm currently has 10 units of capital (K) Suppose the production function for a firm is given by: q-4L.K. · lf 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.) Answer:

  • 5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK...

    5) A firm producing hockey sticks has a production function given by F(L,K) = 2 LK . In the short-run, the firm's amount of capital equipment is fixed at K = 100. The rental rate of capital is r=$1, and the wage rate of labor is w=$4. a. Derive the firm's short-run total cost curve. What is the short-run average total cost? What is the short-run average variable cost? b. Find the short-run marginal cost function. What are the total...

  • Given production function Q=f(K, L) = 8KL + √L where K is capital and L is labor.

    Given production function Q=f(K, L) = 8KL + √L where K is capital and L is labor. a. Find marginal product of labor and marginal product of capital.b. Define what is marginal rate of technical substitution, MRTS. Calculate the MRTS  for the above case.c. When K = 10, L = 16, what is the total output? Sketch this isoquant function on a diagram where K is the vertical axis and L is the horizontal axis.

  • Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2...

    Consider a firm that faces the following production function: q = f(L, K) = L1/2 K1/2 where q is output, L is labor, and K is capital. Use this production function to answer the following questions. (a) What is the marginal product of labor (MPL)? (b) Does the MPL follow the law of diminishing returns? How do you know? (c) What is the marginal product of capital (MPK)? (d) Does the MPK follow the law of diminishing returns? How do...

  • A firm can manufacture a product according to the production function: Q = F(K, L) =...

    A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4. Instruction: Enter your responses rounded to three decimal places. a. Calculate the average product of labor, APL, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. ____ What is the average product of labor when the firm uses 256 units of labor? ____ Instruction: The second response is the exponent on L in the...

  • 1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L?...

    1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L? Assume K = 25. a. Fill in the following table. (First, find the total output from the production function, then find the marginal product by dividing the change in total output by change in labor.) Capital MPL Labor 7 Total Output 126 APL 18 25 12 25 25 25 25 25 10 11 12 13 14 15 25 25 25 b. How many units...

  • Suppose the production function for a firm is given by: q=4L^0.75*K^0.25. If the firm currently has...

    Suppose the production function for a firm is given by: q=4L^0.75*K^0.25. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK).

  • A firm uses labor (L) and capital (K) as inputs, and has a short run cost function C=15+ 10q+ q2. Capital is fixed at K̅

    A firm uses labor (L) and capital (K) as inputs, and has a short run cost function C=15+ 10q+ q2. Capital is fixed at K̅ a. Give the formula for the firm's marginal cost function. Any method of deriving the marginal cost function is acceptable. (Hint: When calculating MC, you can assume that increases by a very, very small amount, so that q2 = q1 + ε ≈ q and q1 + q2 ≈ 2q.) b. Give the formula for the firm's...

  • 6. When a firm uses K units of capital and L units of labor, it can...

    6. When a firm uses K units of capital and L units of labor, it can produce 2 units of output with the production function 2=VLEVK Each unit of capital costs 2, and each unit of labor costs 1. a. The level of K is fixed at 16 units. Suppose 234. What will the firm's short-run total cost be? (Hint: How much labor will the firm need?) b. The level of K is fixed at 16 units. Suppose 2 4....

  • A firm has the production function F(L, K) = L1/2 + K1/2. The price of labor...

    A firm has the production function F(L, K) = L1/2 + K1/2. The price of labor is $30 and the price of capital is $10. The firm has a production goal of 100 units of output. a) Carefully write out this firm’s cost minimization problem, using the particulars of this problem. b) Give two equations—particular to this problem—that the solution satisfies. c) Solve for the firm’s optimal input bundle. d) Determine the firm’s cost of producing 100 units of output....

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