1. Given the production function: q = 2KL,(a) Fill in the table below which has information on the short-run productionfunction, the marginal product of labor (MPL), and the average product oflabor (APL) if capital is held fixed at 3 units in the short-run.Labor Quantity of Output (MPL) (APL)01491625(b) Plot the short-run production function.(c) Plot the marginal and average products of labor on a new graph.(d) Does the law of diminishing marginal returns apply? If so, at what level oflabor do diminishing marginal returns set in?(e) What is the relationship between the marginal product of labor (MPL) and theaverage product of labor (APL)?(f) If the amount of capital increased to 6 units, what would happen to your graphsin part C)?

Step 1: Step 2: Step 3: Step 4:

Answered: 1. Given the production function: q =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

13. Suppose you have a production technology given by f(x1, x2) = min{2x₁, x2} and you are producing at the point where x₁ = 10 and x₂ = 20. (a) Explain in words what we mean (generally) by the ‘marginal product' of an input in production. (b) For the production technology in this question and the initial point x₁ = 10 and x2 = 20, what is the marginal product of a small increase in input 1? (c) Suppose input 2 increases and you are now at the initial point x₁ = 10 and x2 = 30. Relative to your answer in part (b), does the marginal product of input 1 decrease, increase, or stay constant? Explain briefly.
5. Selpats produces pens with the production function f(k, l) = 200vkl. The price of capital is wk = 40 and the price of labor is wL = 10. (i) Determine the optimal input bundle for producing y pens in the long run and find the long-run cost function. (ii) Determine the optimal input bundle for producing y = 10,000 pens in the long run. (iii) Now suppose that capital is fixed at k = 25 in the short run. Find the short-run total cost function and the short-run marginal cost function. Explain the relationship between the short-run and long-run marginal costs when y = 10,000. (iv) Suppose that the price of output is p. Which value of y maximizes short-run profit? р.
Assume a Cobb-Douglas production function of the form: 3 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal This production function exhibits q=10L0.28K0.59 (Enter a numeric response using a real number rounded to two decimal places.) OA. increasing returns to scale. OB. constant returns to scale. OC. initially decreasing but then constant returns to scale. O D. decreasing returns to scale. O E. initially constant but then decreasing returns to scale.
Consider the followng production function: 1 2 9 = x?x where x, and x, measure the employed quantities of input #1 and input #2, respectively. (a) Solve for and graph this firm's isoquant at q isoquant. 10. Please label three points along this (b) Does this production function exhibit increasing, decreasing, or constant returns to scale? Explain. Please corroborate your answer using a set of isoquants when the quantity of both imputs gets doubled. Note: Be sure to plot x2 along the y-axis.
Could you solve d,e,f ? Thank you
Lesson 7- Production Question 8
Suppose the representative firm of the economy has a production function of the form F(K, N) = AKO.5N 0.5 The marginal product of labor is then given by MP N = 0.5AK0.5N –0.5 . The current capital 3. stock is K = 40. (a) Holding fixed capital at 40, draw a graph of output as a function of labor. What are some important features of this graph? (b) If A = 4 what is the Labor Demand Curve, ND(w), as a function of the real wage w? (c) Suppose labor is supplied inelastically with NS(w)= 10. What is the equilibrium wage w, employment level N, and full employment output Y ? (d) Suppose that productivity unexpectedly increases to A = 6. What is the new equilibrium wage w, employment level N, and full employment output Y ? (e) Depict this change graphically. Denote the original labor supply and demand curves by NS and ND respectively. Denote the new labor demand curve after the productivity shock by ND' . (Does not need to be to scale).
1. Suppose the production function is Q = 8L + 15K where Q is the quantity of output, L is the quantity of labor used in production, and K is the quantity of capital used in production. What can be said about this production function? It has Decreasing Returns to Scale It has Constant Returns to Scale It has Increasing Returns to Scale There isn’t enough information to determine the Returns to Scale for this production function 2. You’re dreaming of what to do during a nice summer day. You could mow the lawn which you would pay someone $15 to do for you. You could go for a walk which you value at $11. You could also take a nap and ignore everyone and everything else which you would pay $29 to do. If you to take a nap, what is your opportunity cost? Group of answer choices $29 $26 $15 $11
Consider a short run production function q=5L+K, using L units of labour and K units of capital. Compute the marginal product of labour. 2. Does the production function exhibit decreasing, increasing or constant returns to scale?
Need help with part b and c

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS