3. Consider the following production function q = K12 +L2. r1/2 a) Find the conditional demands...
4. Suppose the production function is given by (a) For a given set of prices w and v, find the conditional demands for capital 1 labor. Also compute the cost function and (b) Compute the long run profit maximization quantity and the resulting profits (c) Solve for the unconditional demands for capital and labor (d) Show that the quantity produced and the profits from the unconditional demands are the same as the ones you got in part b 4. Suppose...
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...
2) Eor each of the production functions below, find the cost function and conditional factor demands if w1-2 and w2-4. What is the amount of x1 and x2 that minimizes the cost of producing 4 units of output? a. f(x)- XiX22 b. fx)- 2xi+x2 c. f(x)-min(x,2x2) d. u(x)- max(xi,X2)
5. Let the firm's production function be given by y 1+2. Note that the inputs r1 and 2 are perfect substitutes in this production process. Suppose wi 2 and w2 1 (a) Derive the conditional factor/input demands and use them to find the long-run cost function for this firm. (b) For these factor prices, derive the firm's long-run supply curve. (c) For these factor prices graph the firm's long-run supply curve. (d) Suppose the price of the second input, w2,...
/3 y13 6. Suppose that a firm has a production function given by: q-Ks a) Derive the conditional factor demands. b) Derive the cost function. c) Derive the supply function. d) Derive the input demand functions.
Production function: y= K^(1/2)L^(1/3) a) solve the cost minimization problem and find expressions for conditional labor demand and conditional capital demand b)find the minimized cost function from a) c)suppose that w=r=1 and suppose that fixed costs are equal to FC=4. find and plot average fixed costs, average variable costs, average total cost and marginal cost
Consider the following production function Q(K,L)=100(?^1/2 + ?^1/2 )^2/3 where K is capital and L is labor. 1.1) Determine the returns of scale. 1.2) Find the output elasticity for the production function. 1.3) Interpret your answer in part (1.2)?
Consider production function f(l, k) = l2 + k2 (a) Evaluate the returns to scale. (b) Calculate the marginal product of labor and the marginal product of capital. (c) Calculate the MRTS. (d) Does the production function exhibit diminishing MRTS? (e) Plot the isoquant for production level q = 1. Hint: Notice that the input mixes (1; 0) and (0; 1) are on this isoquant.
For a production function F(KL) = K-L2 and factor prices wK-2 and WL-3 Assume that K equals 27 units in the short run a. Derive the long run optimum bundle of inputs if the quantity of output is q-25-32. b. Derive the long run cost function of a firm with this technology. c. Derive the short run cost function of a firm with this technology. For a production function F(KL) = K-L2 and factor prices wK-2 and WL-3 Assume that...