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4. Obtain the profit function of a firm that produces three types of output using three inputs. The output vector is given by 2,000 q-3,000 6,000 the price per unit of output vector is given by 107 2...
4. Obtain the profit function of a firm that produces three types of output using! three...
4. Obtain the profit function of a firm that produces three types of output using! three inputs. The output vector is given by 2,000 9 = 3,000 L6,000 the price per unit of output vector is given by 10 20 the input vector is given by z = 2,000 2.500 2,000 and the price per unit of input vector is given by w = 10
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...
1.1. What is the set of profit-maximizing inputs if the profit function of a firm is...
1.1. What is the set of profit-maximizing inputs if the profit function of a firm is given by: π(X, Y) = P ln[X + aY] – wX – wY where P - price of output f(X,Y) = ln[X + 0.5Y] - production function X - input 1, X>=0 Y - input 2, Y>=0 w - same price of input for inputs 1 and 2 a - parameter between 0 and 1 1.2 What is the set of profit-maximizing inputs if...
of 3. Suppose there is a firm that produces nonnegative output quantities q = 101 02...
of 3. Suppose there is a firm that produces nonnegative output quantities q = 101 02 " en n different goods. It does so using the very same output it produces as inputs, x = 2 22 ... 2n). For each output i (i = 1,...,n), let the following price vector represent the price of ouput i, p = P1 P2 ... Pn]. Let n = 5: a. derive the firm's revenue; b. derive the firm's cost; and, c. derive...
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...
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....
Suppose we are given a profit function Q = 12L.5K.5 . The price of labor is $6...
Suppose we are given a profit function Q = 12L.5K.5 . The price of labor is $6 per unit and the price of capital (K) is $7 per unit. The firm is interested in the optimal mix of inputs to minimize the cost of producing any level of output Q. In the optimal mix the ratio of labor to capital is ____ . Hint: Write your answer to two decimal places. When discussing ratios the convention is "ratio of a to...
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input...
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input r>0 by way of the production function () , where f(x)竺2x2 . The firm's output sells at the price p >0 while the input is purchased at the price wo (a) (b) (c) Determine the lalue of the input that solves the FONC, and denote it by x (p,w). Is Set up the profit maximization problem. Derive the FONC and SOSC. x(p,w) unique? Explain....
competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production...
competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production function is q = 305x − 2x2, where x is the amount of the variable factor used. The price of the output is £2 per unit and the price of the variable factor is £10 per unit. In the short run, how many units of x should the firm use ?
4. Obtain the profit function of a firm that produces three types of output using! three inputs. The output vector is given by 2,000 9 = 3,000 L6,000 the price per unit of output vector is given by 10 20 the input vector is given by z = 2,000 2.500 2,000 and the price per unit of input vector is given by w = 10
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...
of 3. Suppose there is a firm that produces nonnegative output quantities q = 101 02 " en n different goods. It does so using the very same output it produces as inputs, x = 2 22 ... 2n). For each output i (i = 1,...,n), let the following price vector represent the price of ouput i, p = P1 P2 ... Pn]. Let n = 5: a. derive the firm's revenue; b. derive the firm's cost; and, c. derive...
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....
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input r>0 by way of the production function () , where f(x)竺2x2 . The firm's output sells at the price p >0 while the input is purchased at the price wo (a) (b) (c) Determine the lalue of the input that solves the FONC, and denote it by x (p,w). Is Set up the profit maximization problem. Derive the FONC and SOSC. x(p,w) unique? Explain....
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