for Asia. Find L K and cost of production AU.S. apparel manufacturer is considering moving its production abroad. Su...
AU.S. apparel manufacturer is considering moving its production abroad. Suppose its production function is: q=L0.60 0.40 In the United States, w = 6 and r = 4. At its Asian plant, the firm will pay a 50% lower wage and a 50% higher cost of capital: w* = 6/1.50 and r* = 1.50 x 4. What are L and K and what is the cost of producing q = 100 units in both countries? (for all responses, enter a real...
A U.S. electronics manufacturer is considering moving its production abroad. Suppose its production function is q=L^0.7K^0.3 In the United States, w=$7 and r=3. In Mexico, the wage is 50% lower than in the United States but the firm faces the same cost of capital: w*=$3.50 and r*=3 In the U.S., L is ___, K is ___, and the cost of production is ____ In Mexico, L is ____, K is _____, and the cost of production is _____
AUS electronics manufacturer is considering moving its production abroad. Suppose its production function is q=L0604 In the United States, w = $6 and 4 In Mexico, the wage is 10% lower than in the United States but the firm faces the same cost of capital w = 55.40 and r = 4 What are Land K and what is the cost of producing 100 units in both countries? (for all of the following questions, enter a numeric response using a...
A US electronics firm is considering moving its production to a plant in Mexico. Its estimated production function is q = 10L0.32K0.56. In the US, the wage rate and the rental cost of capital are same and equal to $15. At the Mexican plant, the firm will pay a 10% lower wage and a 10% higher cost of capital. a) (10 points) What are the L and K and cost of producing q = 250 units in both countries? b)...
1. There is a furniture manufacturer using labor (L) and capital (K) to produce tables. Its production function is given by q= 10L^.75 K^.40. It pays a wage of $5 per hour and rents capital at a rate of $15. The firm wants to find the cost-minimizing bundle of inputs to produce 10,000 tables. Assume K is on the y-axis in what follows. Write out the firm’s cost function. Calculate the firm’s isocost equation. What is the slope of the...
2. A company is producing toasters. Its production function is given by qf(L, K) KL2. The company wants to produce 1,000 toasters per hour and the price of capital is $10 per hour. dq 2KL and MP a) The company is considering building a factory in Country A where the price of labor is $5 per hour. What combination of labor and capital minimizes the company's cost in Country A? b) The company is also considering building a factory in...
Afir's production engineers have estimated its production function as Q(KL) = 2K2/1/2 = 2-K L=2KL where ' and 'L' represent the amounts of capital and labour, respectively, used in production each period, and 'Q' represents the amount of output produced each period. The firm pays a wage, w, for each person-hour of labour of $16. The rental rate of a machine-hour of capital, wk, is $100. What will be the firm's minimum cost of producing 10 units of output? What...
6. Dumping is defined as selling a good abroad at prices below its cost of production or below the price charged in the home market. selling a good abroad at prices above the costs of the firms in the foreign countries. exporting goods that are sources of pollution. exporting goods that are of inferior quality. Question 7 Free trade policies may lead to some labor sectors experiencing some short-term job loss. a decrease in world output. price increases in world...
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...
can someone help me please please Cost minimization For the production fuction is given by f(l, k) = √ l + √ k, where l is the quantity of labor and k is the quantity of capital, suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r is the interest rate (price of a unit of capital). Suppose the firm must produce y > 0 units of...