1. Assume that production technology is defined as Q = AL K³ where Q is the quantity produced, L is the labor, K is the capital, and A is the productivity parameter. The output Q needs to be at Q = Qº. Find the marginal rate of substitution of capital for labor, MRS = |OK/OL, needed to keep the output Qº using the implicit function theorem.
Q: Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley.…
A: Production possibility Frontier or PPF shows the different combinations of two goods produced.
Q: Answer the question on the basis of this table showing the marginal benefit that a particular public…
A: A consumer's utmost willingness to pay for an additional commodity or service is known as the…
Q: What would happen if suddenly banks stop lending (this has happened in the past)? Can it grow?
A: A commercial bank is a type of financial organisation that takes deposits from the general public…
Q: What would the value of spending be if you had $1300 in savings and $2250 in income?
A: The benefit gained from spending would amount to $2,250. Explanation: If you don't have any…
Q: Consider the maker for gasoline. a. Start in Equilibrium (be sure to label all relevant points) b.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: #9
A: The economies around the world tend to work together with each other with the help of various…
Q: Exhibit 4-7 WM W₁ 0 N3 N₁ Number of Unskiled Workers WM Minimum Wage N₂ N3 persons none of the above…
A: Minimum Wage refers to the regulation that the government or any governing body such as the workers…
Q: Explain the circular flow between the household sector and firms sector with the financial market.…
A: The circular flow diagram is a visual representation of the economy that demonstrates how cash moves…
Q: In a market-oriented economy, the amount of a good that is produced is primarily decided by the…
A: There are unlimited wants of people in the world, and resources to fulfill these wants are limited.…
Q: Wine QUESTION 12 Figure 2-1 Bread The most inefficient point depicted in Figure 2.1 is: Point A…
A: Production possibility frontier (PPF) shows a probable combination of two commodities produced in an…
Q: Solve for the equilibrium quantity
A: The market equilibrium (E) occurs when market DD equals market SS, according to market theory. The…
Q: Graph and explain how the market for used cars is impacted by higher prices for resources used to…
A: Equilibrium refers to a situation of stability in the market where the demand and supply conditions…
Q: 5 In a discussion with your friend, LeeAnna, you mentioned you have studied Price Elasticity of…
A: Price elasticity of demand (PED) is the number that describes how changes in prices of a certain…
Q: Consider the market for High-Definition television sets in an average town in America. a. Start in…
A: In a free market, the equilibrium is attained by the forces of the demand and supply curve. The…
Q: A company produces and sells a consumer product and thus far has been able to control the volume of…
A: A. Given the demand equation D=500-5P Evaluate the optimal number of units sold to meet the…
Q: Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are…
A: Given, Price of fastening pins : $0.70eachFor Design A : 12 hours of lathe time and 5 hours of…
Q: The law of diminishing marginal utility states that Multiple Choice O total utility is maximized…
A: Utility is defined as the total amount of satisfaction derived from the consumption of a good.…
Q: Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour. (a) Draw a graph…
A: Equilibrium is occurs at the cost at which amounts demanded and supplied are equival. We can address…
Q: If savings are at $1300 and income is worth $2200, what would the value of consumption be
A: According to neoclassical economists, ingestion serves as the ultimate goal of economic activity; as…
Q: 6
A: In the agriculture sector, the gender gap can make it difficult to achieve a high productivity…
Q: Explanation this problem
A: We know that The labor market refers to the place where the job seekers and the job providers meet.…
Q: What of the following is an expenditure of an intermediate good excluded from GDP? A. American…
A: GDP refers to the final goods and services produced in an economy during a particular period of…
Q: Which of the following is NOT a concern for macroeconomics? O A. The level of unemployment caused by…
A: Microeconomics manages costs and production in single markets and the connection between various…
Q: How much (if any) does each of the following transactions raise GDP? The Jones family sells its old…
A: Buying and selling of old items or houses are not part of GDP calculation. Only commission during…
Q: For each of the events describe below, you are required to explain: 1. The market you are evaluating…
A: The volume of total production alludes to the output fabricated by the enterprise or its foundation…
Q: Burger King has introduced new strategy by reducing the price of its Whopper by 75 percent if…
A:
Q: Divide each circle proptionately according to the percentage exports made up by primary products and…
A: The gross national product of a country is the total value of all goods and services generated by…
Q: A company produces a special new type of TV The company has co able to sell 800 TVs. If the company…
A: Total revenue from the sale of a commodity is price times quantity. TR = P×Q Total cost is the sum…
Q: 6 Price (dollars) CU D 400 600 Quantity 800 1,000 Exhibit 4-2 represents the orange juice market.…
A: Ans. The price ceiling is the maximum legal price that is set by the government below the…
Q: A 60-year-old investor is interested in purchasing a fund that provides tax-free income and a high…
A: A municipal bond is a loan made to a state or local government or an entity controlled by it. A…
Q: 7. Choose the right answer and explain. Guan has spent £2,175 on a console and video games. What is…
A: Opportunity cost can be defined as the potential benefits that is given up by an individual or a…
Q: A public good Multiple Choice O O O generally results in substantial negative externalities. can…
A: Non rivalrous is a quality of the good which is that the quantity of good does not get reduced for…
Q: On the distant planet of Blompf, there are two types of citizens: Strongs are good at manufacturing…
A: Production possibility curve shows the different combinations of two goods that can be produced with…
Q: 1. The maximum amount of steel or aluminum that Canada and France can produce if they use all the…
A: The production possibilities curve (PPC) is a chart that shows every one of the various…
Q: Question 7 The table sets out some data for an economy. Item Consumption expenditure Indirect taxes…
A: GDP is defined as the total production of all goods and services within territory of the country in…
Q: Answer quickly fast don't copy
A: In an economy, it is possible that illegal merging and contracting of businesses can be the cause of…
Q: • Use the data from the table below to construct correctly labeled side-by-side graphs showing the…
A: Microeconomics refers to the branch of mainstream economics that studies the behavior of individuals…
Q: 2 ABC university tuition fees can be paid by on-time payment (pay total amount due when classes…
A: The payments paid in advance usually entails some discount rate. The discount in payments leads to…
Q: What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on…
A: Total expenditure in an economy is also referred to as its GDP. Total Expenditure includes…
Q: Consider a product market with three consumers X, Y and Z with demand function PX = 6 - QX, PY = 12…
A: Public goods are the goods which are non-excludable and non-rival in nature. Non-rival are the goods…
Q: What is the average fixed cost and average variable cost if nine instructional modules are produced?…
A: Cost is the total amount spent or the total expenditure which is incurred while producing a product…
Q: Using the supply and demand functions below, derive the demand and supply curves if Y=$55,000 and…
A:
Q: Suppose the inverse market demand is P (9₁.92) = 275-9₁-92 and each firm has a marginal cost of $70…
A: Introduction We have given two firms which compete with each other in terms of quantities. We have…
Q: the answer was wrong
A: Probability hypothesis is the underpinning of factual science, giving a numerical method for…
Q: Two companies produce similar items for the same market. Company 1 produces 9₁ items and Company 2…
A:
Q: Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows…
A: The countries involve in trade. Trade is very beneficial for all countries. It improves the market.…
Q: What does potential GDP mean and what does it mean in terms of neoclassical analysis? Please be sure…
A: GDP is the total market value of the finished goods and services produced in a nation over a…
Q: How would the Cournot equilibrium change in the airline example if American's marginal cost were…
A: The optimum response function for each nation must first be derived before we can calculate the…
Q: Which should central banks focus on more, unemployment or inflation? Why? Please cite sources to…
A: A increase in the cost of goods and services throughout the economy is referred to as inflation. A…
Q: ITEM A B C D E Pretzels 0 300 450 600 700 Notebooks 125 100 50 25 0 What is the opportunity cost of…
A: Opportunity cost is the cost that we have to bear in terms of other goods. Resources are scarce and…
Step by step
Solved in 2 steps with 1 images
- What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?If capital and labour are perfect complements then the marginal products of capital and labour are undefined A True Faise Question 16 A firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product of labour must be 0.25 True B False Question 17 Afirm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 05. If there are constant returns to scale the marginal product of labout must be 0.25 A True FalseUSE R LANGUAGE TO SOLVE THE equation The output of a production process, Q is given by the function2K^(-3)L^(5/2)/2K log4 6L^2where K and L denote capital and Inbour. Calculate the output when the capital and labour are 10 and 20 units, respectively.
- QUESTION 2 K 6 isocost 3 L Based on the information in the graph aboive, what is the slope of the isocost line? # If the price of capital remains the same and the price of labor decreases, the isocost line will With the current mix of labor and capital, the marginal technical rate of subsitution is MRTS-3. If the prices of labor and capital remain as shown in the graph, then the firm will minimize the cost of production by +Suppose there are two inputs for production, labor and capital. The firm’s production process isdefined by the following production functiony=f(L,K).Howdoweinterpretthefirm’smarginalrateof technical substitution? a)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same cost level b)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm produces one more unit of output c)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same level of production d)a) and b) are correct e)a) and c) are correctConsider the following production function: q = 9LK + 6L² – Assuming capital is measured on the vertical axis and labor is measured on the horizontal axis, determine the value of the marginal rate of technical substitution when K= 30 and L= 10. MRTS = -. (Enter a numeric response using a real number rounded to two decimal places.) 20 tv MacBook Air F6 FB 10 F3 23 2$ & з 4 6 7 8 { [ E Y U P D F G J K > C V N M command option - .. .- B
- Digging calms by hand in Sunset Bay requires only labor input. The total number of calms obtained per hour (q) is given by :Q = 100√LWhere L is labor input per hour. A. Graph the relationship between q an LB. What the average productivity of labor in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increase in labor input. C. It can be shown that the marginal productivity of labor in Sunset By is given by:MPL =50√LGraph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L . Explain why this is do.D. Explain the concept of diminishing returns to labor and how this concept related to increasing marginal costs.For the production function given by /2 Hab – Aa² – Bb² , dhow that the marginal rate of technical substitution between the factors depends only on the ratio b: a of the factors used.1. Consider the production function Q=K³/ª L/4 Further suppose that capital is fixed at 16 units. Answer the following questions: a. Find Q when L =16 units. What is the output (Q) when L increases to 81 units? e b. Find the average product of labor when L when L increases 81 units? 16 units. What is the average product of labor %3D c. Find the marginal product of labor when L 16 units. What is the marginal product of labor when L increases 81 units? d. Show that doubling all the inputs doubles the output.
- 1. Assume that a firm has the following production function: q = L0.5K0.6 d. Determine, both, the marginal product of labour and capital functions (ignore c.). e. Calculate, both, the marginal product of labour and capital when L = 64, K = 32 and interpret your answers. f. Calculate the marginal rate of technical substitution when L = 64, K = 32 and interpret your answer.1. The following production function is used to produce wheat, q, from capi- tal, K, and labour, L: q = f(K, L) = «³K/3 + B³L/3 a) Describe the role of a and B in this production function. b) Derive the slope of an isoquant for this production function and in- terpret your result. Draw the isoquant in (K L) space, labeling where appropriate. The drawing does not need to be exact, but the curvature needs to be approximately correct. Explain why under- standing the curvature is so important. | c) Does this production function follow the "Law of Diminishing Marginal Returns"? Show your work and explain your answer.1. A general form of the Cobb-Douglas production function is given by Q = AKº L³ where A, a, 3 are positive constants. A. Solve for the marginal products of capital and labor. B. For what values of a and 3 will the production function exhibit diminishing marginal returns to capital and labor? C. Solve for the marginal rate of technical substitution.