Draw the isoquant of following production function and indicated level of output.
Q=min(2L,0.5L+0.5K,K) Q=4
Draw the isoquant of following production function and indicated level of output. Q=min(2L,0.5L+0.5K,K) Q=4
Priyanka's company has the production function Q=100K^0.5L^0.5, where Q measures output, K measures machine hours, and L measures labor hours. Suppose that the rental rate of capital is R=$30, the wage rate is W=$15, and the firm wants to produce 5,000units of output. Use the Lagrange method to find the optimal input mix. What the optimal level of K & L?
A textile company has the production function Q = min{0.25K, 0.5L}, where K is units of capital and L is hours of labor. a. Without any warning, the price of capital doubles. What should this textile company do in response? b. If this textile company were planning a new plant, would there be any advantages to a larger facility?
For the production function Q = min{4L,3K}, what bundle of inputs is on the same isoquant as (L=4,K=4)? (a.) (L=2,K=3) (b.) (L=4, K=1) (c.) (L=2, K=1) (d.) (L=6,K=2)
(6 pts) Consider the production function q = 3L05 K. a. Sketch the isoquant for producing a = 12 units of output. Label at least three points on the isoquant. b. Sketch the isoquant for producing q = 18 units of output. Label at least three points on the isoquant.
A firm produces output according to the production function: Q = F(K,L) = 2K + 2L. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $65 per hour and the rental rate on capital is $35 per hour, what is the cost-minimizing input mix for producing 4 units of output? Capital: Labor:
3. Suppose that the firm's production function is Q = min{2L, K}. Suppose hourl wage is $10 and hourly rent for capital is $20. What is the long-run total cost curve?
1. Suppose the production function is given by Q = LK, where MPL = K and MPK - L. The level of output Q = 100 and both wage and interest rates are equal to one, so that war- a) Given that the wage increases to 4. determine the elasticity of demand for labour at the new wage. Indicate whether the wage bill will increase or decrease as wage increases to 6. b) Find the linear demand function for labour...
For following two production functions: (1) Q = L1/4 K (2) Q = 2L + 4K a) Determine whether factor L is subject to diminishing marginal returns? What about K? b) Calculate the MRTS. c) Determine returns to scale: CRS, IRS or DRS. Show how you arrive at your answers. For function (2) also draw a few representative isoquants; fully label your graph.
7. Suppose a firm's production function is Q-min(L,K). (This means the level of O produced is the smaller of L and K) a. Graph some isoquants for this firm. b. Let w = 2, r= 1, and suppose the firm's expenditures are C-12. What are the firm's demands for L and K? What is the share of labor in the cost of output? c. Now let w rise to 3. What are the firm's new demands for L and K?...
Suppose a firm produces an output level according to the simple production function: Q = 5 L K, which implies M P L = 5 K and M P K = 5 L. Further suppose a firm must pay labor (L) a wage rate (w) of $5 per unit, and the rental rate (r) on capital (K) is $25 per unit. A. Find the marginal rate of technical substitution. B. Write the equation for the isocost line. What is the...