1. A firm’s production function is , where Ldenotes the size of the workforce. Find the value of MPLin the case when: (a) L=1, (b) L=10, (c) L=100, (d) L=1000 Does the law of diminishing marginal productivity apply to this particular function?
(a) L=1, (b) L=10, (c) L=100, (d) L=1000
Does the law of diminishing marginal productivity apply to this particular function?
where A and n are positive constants.
and hence determine the value of Q which maximizes profit.
How many floors should the office complex contain if the average cost per floor is to be minimized?
The government decides to impose a tax, t, per unit. Find the value of t (in Ghana cedis) which maximizes the governments total tax revenue on the assumption that equilibrium conditions prevail in the market.
where is the amount of leisure measured in hours per week and is income earned measured in cedis per week.
Determine the value of the
Where and denote the number of items of goods 1and 2, respectively that are produced. Using the substitution method, find the values of and which minimize costs if the firm is committed to producing 40 goods of either type in total.
where and denote the quantity of items of goods 1and 2, respectively that are produced. If P1 and P2 denote the corresponding prices then the demand equations are
Using the Lagrange multiplier approach, find the maximum profit if the firm is contracted to produce a total of 15 goods of either type. Estimate the new optimal profit if the production quota rises by 1 unit.
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