A firm has production function Q= L1/2 K1/2 with general w & r d. Is the demand for labour downward sloping? Is the...
A firm has production function Q= L1/2 K1/2 with general w & r
d. Is the demand for labour downward sloping? Is the demand for capital downward sloping? Use calculus to answer.
d. Find the firm’s total cost function, LTC (Q). Draw LTC (Q) on a diagram.
e. How will costs change when the firm produces one more unit of output? Use calculus to answer.
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A firm has production function Q= L1/2 K1/2 with general w & r d. Is the demand for labour downward sloping? Is the...
Suppose a firm has a production function given by Q = L1/2 K1/2. Therefore, MPL = K1/2 / 2L1/2 and MPK = L1/2 / 2K1/2 Th...
Suppose a firm has a production function given by Q = L1/2 K1/2. Therefore, MPL = K1/2 / 2L1/2 and MPK = L1/2 / 2K1/2 The firm can purchase labor, L at a price w = 36, and capital, K at a price of r = 9. a) What is the firm’s Total Cost function, TC(Q)? b) What is the firm’s marginal cost of production?
A firm has the production function F(L, K) = L1/2 + K1/2. The price of labor...
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Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 49. If the price of Labor, w = $6 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 28 units of output?
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...
Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 36. If the price of Labor, w = $12 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 48 units of output? MC = ________________________
5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate...
5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate w = 16 , rental rate r = 2 , and the price of the materials m = 1. 1) Suppose in the short run, K is fixed at K *. What’s the solution to the firm’s short run cost-minimization problem? 2) What is the solution to the firm’s long run cost minimization problem given that the firm wants to produce Q units of...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor...
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = ½ L-1/2K1/2and MPK = ½ L1/2K-1/2 a) Suppose the price of labor is w = 18, and the price of capital is r = 2. Derive the firm’s total cost function. b) What is the firm’s marginal cost? c) For this problem, you will sketch the graph of the firm’s isoquant for Q...
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...
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...
. Suppose the production function of a firm is given by q = L1/4K2/4. The prices of labor and cap...
. Suppose the production function of a firm is given by q = L1/4K2/4. The prices of labor and capital are given by and w = $9 and r = $18, respectively. Derive the long run cost function. Show your work. What happens to the firm’s average cost as it increases production and why? Derive the firm’s long run supply function. What will be the quantity of output that maximizes the firm’s profit when the price of output is $1?...
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...
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