Homework Answers
Add Answer to:
#3 3. The isoquant map for a firm that produces output with labor and capital is shown on the next page. The price...
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The...
Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firms Production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm’s Total Cost function? TC(Q) = ____________________________ b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm’s isoquant for...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this firm's isoquant map B. What equation do you use to find a cost-minimizing combination of inputs for a certain output level Q.? K C. The marginal products of labor and capital are given by MP, = 50, and L MPK = 50, L respectively. The price of labor is $5 per unit, and the price of K capital is $20 per unit. What is...
Suppose a firm produces an output level according to the simple production function: Q = 5...
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...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q)= b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm's...
1 pts Question 10 Which of the following is most accurate about an isoquant? O The isoquant of a higher level of o...
1 pts Question 10 Which of the following is most accurate about an isoquant? O The isoquant of a higher level of output is always shown closer to the origin. 0 Anoutput level Q can only be produced by input combinations on its isoquant The isoquants of two different output levels cannot cross each other in the short run, but in the long run they may cross None of the above is correct. 1 pts Question 11 11. Which of...
2. Assume that a firm needs to produce 500 units of output and it has ability...
2. Assume that a firm needs to produce 500 units of output and it has ability to choose how much capital and labor to use as inputs. Firm's production function and marginal products of factors are 2VL, and MPK 100L ых 100K . Use this information to answer the following questions. In your computations keep at least three decimal places. (a) If initial wage w is $12.50 and rental rate of capital, r, is $17.50, find the cost-minimizing labor- capital...
12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocos...
12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocost is equal to the slope of the isoquant the Marginal Rate of Technical Substitution (MRTSLK) equals the input ratio of Land K. the productivity ratio of labor and capital equals their total-cost ratio. all of the above are correct
Use the graph: Capital Isoquant 2 Isoquant 1 Isocost Labor 50 60 100 8. What is the MRTS between points A and B? 9....
Use the graph: Capital Isoquant 2 Isoquant 1 Isocost Labor 50 60 100 8. What is the MRTS between points A and B? 9. What is the MRTS between points B and C? 10. What is the slope of the isocost curve if wages=$300 a week and the rental price of capital is $300 per week? 11. Which isoquant curve represents higher output? 12. If Isoquant 1 represents output of 3000, what is the cost minimizing combination of inputs to...
5. The marginal product of labor in the production of computer chips is 50 chips per...
5. The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/2. What is the marginal product of capital? 6. Suppose that a firm's production function is q = 10LT/2K1/2. The cost of a unit of labor is $20 and the cost of a unit of capital is $80. a. The firm is currently producing 100 units of...
1. Suppose a firm is producing output according to Q=1001KL. A. Draw a sketch of this firm's isoquant map B. What equation do you use to find a cost-minimizing combination of inputs for a certain output level Q.? K C. The marginal products of labor and capital are given by MP, = 50, and L MPK = 50, L respectively. The price of labor is $5 per unit, and the price of K capital is $20 per unit. What is...
2. (12 total points) Suppose a firm can use either Capital (K) or Labor (L) in a production process. The firm's production function is given by Q = 5L + 15K. The price of Capital is $20 per unit and the price of Labor is $8 per unit. a) (4 points) What is the firm's Total Cost function? TC(Q)= b) (8 points) Suppose the firm is producing 30 units of output (Q = 30). Using a graph, draw the firm's...
1 pts Question 10 Which of the following is most accurate about an isoquant? O The isoquant of a higher level of output is always shown closer to the origin. 0 Anoutput level Q can only be produced by input combinations on its isoquant The isoquants of two different output levels cannot cross each other in the short run, but in the long run they may cross None of the above is correct. 1 pts Question 11 11. Which of...
2. Assume that a firm needs to produce 500 units of output and it has ability to choose how much capital and labor to use as inputs. Firm's production function and marginal products of factors are 2VL, and MPK 100L ых 100K . Use this information to answer the following questions. In your computations keep at least three decimal places. (a) If initial wage w is $12.50 and rental rate of capital, r, is $17.50, find the cost-minimizing labor- capital...
12. When the total cost is minimized for producing output Q. at the input combination selected, the slope of the isocost is equal to the slope of the isoquant the Marginal Rate of Technical Substitution (MRTSLK) equals the input ratio of Land K. the productivity ratio of labor and capital equals their total-cost ratio. all of the above are correct
Use the graph: Capital Isoquant 2 Isoquant 1 Isocost Labor 50 60 100 8. What is the MRTS between points A and B? 9. What is the MRTS between points B and C? 10. What is the slope of the isocost curve if wages=$300 a week and the rental price of capital is $300 per week? 11. Which isoquant curve represents higher output? 12. If Isoquant 1 represents output of 3000, what is the cost minimizing combination of inputs to...
5. The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/2. What is the marginal product of capital? 6. Suppose that a firm's production function is q = 10LT/2K1/2. The cost of a unit of labor is $20 and the cost of a unit of capital is $80. a. The firm is currently producing 100 units of...
Most questions answered within 3 hours.
-
What specific indicators can point to lack of progress for
African Americans in American society?
asked 14 minutes ago -
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 30 minutes ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 56 minutes ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 1 hour ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 1 hour ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 2 hours ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 3 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 3 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 4 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 4 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 4 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 4 hours ago