2. A firm has the production function y - z1+ 2z2 Input prices are w 2...
3. A firm has the production function y 5Z1 + Z2- Input prices are w,-9 and W2 = 3 a) What is the cost minimizing input bundle? b) What is the minimum cost to produce 100 units of output?
1. A firm has the production function y-Z1Z2 and faces input prices W1 6 and w2- a) What is the equation of the OEP? b) Is this production function homothetic?
A firm has the production function y= f(x1,x2)= 0.25x11/2 x21/2 . Input prices are w1=$4 and w2= $16 a) Use the technical rate of substitution, the input price rate, and the production function to compute the conditionial input demand fucntion x1(y) and x2(y). b) Compute the firm's long run cost function c(y).
please show all work, thanks!
Problems 1 a) A firm has the production function y = 22212 and faces input prices W1 and w2. Derive the conditional input demand functions for both inputs. b) If W, = $5 and W2 = $10, what is the minimum cost of producing 27 units of output?
3. A firm's production function is given by y z1214. Input prices are wi and w2 Input 2 is fixed at 256. a) Derive the firm's variable cost function. b) Ifw1 8 and w2 5, what is the least cost of producing 40 units of output? c) At these prices and output, what is the marginal cost?
7. A firm has the production function Q=LK. The firm initially faces input prices w = $1 and r = $1 and is required to produce Q=100 units. Later the price of labor w goes up to $4. Find the optimal input combinations for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices.
Suppose that a firm has the production function (1) Draw an isoquant for f(x1,x2) = 10. (5 points) (w1, w2) respec- (2) Suppose that the price of product is p, and that the prices of factors are tively. Find the factor demand function ri(w, w2, p), x1(w1, w2, P), the supply function y(w1, W2, P), and the profit function T(w1, w2, p). (10 points)
Suppose that a firm has the production function (1) Draw an isoquant for f(x1,x2) = 10....
TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input quantities that yield the same level of output. Higher isoquant: higher level of output Marginal Rate of Technical Substitution: MRTS is the slope of the isoquant at any input combination. It tells us the rate at which we must increase the qty of input 2 per unit decrease in qty of input 1. MRTS diminishes as we move down the isoquant from left to...
TUTORIAL2 Chapter 7 Part 1 Key Concepts and Equations: Production Isoquant: shows all combinations of input quantities that yield the same level of output. Higher isoquant: higher level of output Marginal Rate of Technical Substitution: MRTS is the slope of the isoquant at any input combination. It tells us the rate at which we must increase the qty of input 2 per unit decrease in qty of input 1. MRTS diminishes as we move down the isoquant from left to...
Problem 2: A firm has the following production function: f(x1,x2) = x1 + x2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) Suppose the firm wants to produce exactly y units and that input 1 costs $w1 per unit and input 2 costs $w2 per unit. What are the firm's conditional input demand functions? C) Write down the formula for the firm's total cost function as a function of w1, W2, and y.