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![12) Y-1 = 4ALK K+BL K+BL=HALK K+3L-HALK=0 K+ L13-HAK) = 0 113-4AK) = -K | L=-* 3-4 AK HAK-3 recoltk pre = t (ehk-ge] +K7](http://img.homeworklib.com/questions/41cda3e0-047d-11ea-a5ae-2103068145e1.png?x-oss-process=image/resize,w_560)
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Housing Supply Assume that housing production is represented by A Y = 1 3 + 4L 4K L is land and K is capital. Cost...
Housing Supply Assume that housing production is represented by A Y = 1 3 4L+ 4K...
Housing Supply Assume that housing production is represented by A Y = 1 3 4L+ 4K L is land and K is capital. Costs are given by C = rL + K where r is the price of m is income, and p is the price of housing 1. What is the marginai poroduct of land in terms of output Y and land L?
question 4. Housing Supply Assume that housing production is represented by A Y = 1 4K...
question 4.
Housing Supply Assume that housing production is represented by A Y = 1 4K 33 + 4L L is land and K is capital. Costs are given by C = rL + K where r is the price of m is income, and p is the price of housing 4. What is the marginal product of capital? Set it equal to 1 and solve for K. 5. Taking L 1, what is the supply curve for hous ing,...
G Housing Supply Assume that housing production is represented by Y = T + L is land and K is capital. Costs are given...
G Housing Supply Assume that housing production is represented by Y = T + L is land and K is capital. Costs are given by C=rL + K 7. Taking L = 1, what is the marginal cost of producing housing in terms of the amount produced, MC(Y, A)?
7. For the production function q= min(K, 4L) (a) Assume that capital K is fixed at...
7. For the production function q= min(K, 4L) (a) Assume that capital K is fixed at 100 units. Derive and plot Page 2 of . The total product function q(L) ii. The marginal product function MPL(L) ii. The average product function AP(L) (b) Suppose the price of labour w is $1 and the rental rate r is also $1. Derive and plot all cost functions; that is: i. Short run total cost. ii. Variable cost. iii. Fixed cost. iv. Short...
7. For the production function q min(K,4L ): (a) Assume that capital K is fixed at...
7. For the production function q min(K,4L ): (a) Assume that capital K is fixed at 100 units. Derive and plot: i, The total product function q(L) ii. The marginal product function MPL(L). iii. The average product function APL(L). (b) Suppose the price of labour w is $1 and the rental rate r is also $1. Derive and plot all cost functions; that is: i. Short run total cost. ii. Variable cost. iii. Fixed cost. iv. Short run average cost....
A firm's Cobb-Douglas production function for output x is f(l,k)= 25/5k5, where / (labour) and k (capital) 9. are v...
A firm's Cobb-Douglas production function for output x is f(l,k)= 25/5k5, where / (labour) and k (capital) 9. are variable inputs costing w (wage rate) and r (rental cost of capital) each per unit (a) Follow the two-step (indirect) method' and begin by setting up the firm's cost- minimisation problem and deriving the three first-order conditions (FOC8) (4 marks) 2(wr)2 x2 (where, to be clear, (c) The cost function derived from the FOC8 above is c(w,r,x) 3125 1 5 the...
A firm produces toasters using capital (K) and labor (L). The price of capital is r...
A firm produces toasters using capital (K) and labor (L). The price of capital is r > 0 and the price of labor is w > 0. The quantity Q of toasters produced is given by the function: Q = f(L, K) = L^(1/2) K^(1/3) (a) What type of returns to scale does the firm have? (b) Assume that the firm minimizes costs and that all factors are variable . i. Explain the conditions that hold when the plant produces...
2) Assume that a firm faces the following production function: q(L, K) = {1/4K 3/4 a)...
2) Assume that a firm faces the following production function: q(L, K) = {1/4K 3/4 a) Does this function represent increasing, decreasing or constant return to scale? b) Do we have diminishing productivity for factors of production? c) Find short-run cost function if K=256, w=3 and r=4
SM 3. A firm uses capital K, labour L, and land T to produce units of...
SM 3. A firm uses capital K, labour L, and land T to produce units of a commodity, where Q=K2/3+ 1/2+/3 Suppose that the firm is paid a positive price p for each unit it produces, and that the positive prices it pays per unit of capital, labour, and land are r, w, and q, respectively. (a) Express the firm's profits as a function of (K,L,T). Then, find the values of K, L, and T, as functions of the four...
1. The production function of a firm is f(1,k) = Vlk where l is labor and...
1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
Housing Supply Assume that housing production is represented by A Y = 1 3 4L+ 4K L is land and K is capital. Costs are given by C = rL + K where r is the price of m is income, and p is the price of housing 1. What is the marginai poroduct of land in terms of output Y and land L?
question 4.
Housing Supply Assume that housing production is represented by A Y = 1 4K 33 + 4L L is land and K is capital. Costs are given by C = rL + K where r is the price of m is income, and p is the price of housing 4. What is the marginal product of capital? Set it equal to 1 and solve for K. 5. Taking L 1, what is the supply curve for hous ing,...
G Housing Supply Assume that housing production is represented by Y = T + L is land and K is capital. Costs are given by C=rL + K 7. Taking L = 1, what is the marginal cost of producing housing in terms of the amount produced, MC(Y, A)?
7. For the production function q= min(K, 4L) (a) Assume that capital K is fixed at 100 units. Derive and plot Page 2 of . The total product function q(L) ii. The marginal product function MPL(L) ii. The average product function AP(L) (b) Suppose the price of labour w is $1 and the rental rate r is also $1. Derive and plot all cost functions; that is: i. Short run total cost. ii. Variable cost. iii. Fixed cost. iv. Short...
7. For the production function q min(K,4L ): (a) Assume that capital K is fixed at 100 units. Derive and plot: i, The total product function q(L) ii. The marginal product function MPL(L). iii. The average product function APL(L). (b) Suppose the price of labour w is $1 and the rental rate r is also $1. Derive and plot all cost functions; that is: i. Short run total cost. ii. Variable cost. iii. Fixed cost. iv. Short run average cost....
A firm's Cobb-Douglas production function for output x is f(l,k)= 25/5k5, where / (labour) and k (capital) 9. are variable inputs costing w (wage rate) and r (rental cost of capital) each per unit (a) Follow the two-step (indirect) method' and begin by setting up the firm's cost- minimisation problem and deriving the three first-order conditions (FOC8) (4 marks) 2(wr)2 x2 (where, to be clear, (c) The cost function derived from the FOC8 above is c(w,r,x) 3125 1 5 the...
2) Assume that a firm faces the following production function: q(L, K) = {1/4K 3/4 a) Does this function represent increasing, decreasing or constant return to scale? b) Do we have diminishing productivity for factors of production? c) Find short-run cost function if K=256, w=3 and r=4
SM 3. A firm uses capital K, labour L, and land T to produce units of a commodity, where Q=K2/3+ 1/2+/3 Suppose that the firm is paid a positive price p for each unit it produces, and that the positive prices it pays per unit of capital, labour, and land are r, w, and q, respectively. (a) Express the firm's profits as a function of (K,L,T). Then, find the values of K, L, and T, as functions of the four...
1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
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