3. Consider a firm that produces a single output Q using two inputs, q1 and 92. The production technology is the Cobb-Douglas: Let pi be the price of q₁, and p2 be the price of 92. Assume that the price of the output Q is 1. Given: Implicit function theorem Implicit function theorem. - Consider an equation F(x₁... Xm. y) = 0. If an implicit function y = f (x₁..... Xm) exists, then the desired derivatives can be found by

3. Consider a firm that produces a single output Q using two inputs, q1 and 92. The production technology is the Cobb-Douglas: Let pi be the price of q₁, and p2 be the price of 92. Assume that the price of the output Q is 1. Given: Implicit function theorem Implicit function theorem. - Consider an equation F(x₁... Xm. y) = 0. If an implicit function y = f (x₁..... Xm) exists, then the desired derivatives can be found by

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm's production function is given by 1/2 1/2 y = 10x1x2 where x₁ indicates the input labor and x₂ indicates the input capital. (a) Compute the partial derivatives of the production function. Provide an economic interpretation of each derivative. (b) When an amount of capital available is fixed by x2 = 9, compute the par- tial derivative with respect to ₁ and sketch its graph. Determine whether the derivative is monotone increasing or decreasing, and provide an inter- pretation.
Please give me the solution of D
2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 3 8 12 15 17 K=2 10 15 19 22 24 K=3 16 21 25 28 30 K=4 20 25 28 30 31 (1) Suppose that K is fixed at 2. Does this production function exhibit diminishing marginal returns? (ii) Does this production function exhibit constant returns to scale for all values of K and L?
Consider the production function: Q = L1/4 K 3/4 Does this production show increasing, decreasing, or constant returns to scale? Show your work. I. II. Derive an expression for the marginal product of labor. Ш. Show mathematically whether the marginal product of labor is increasing, decreasing, or constant, as the labor input is increased. IV. Derive the average product of labor. Explain whether the average product of labor is increasing, decreasing, or constant, as the labor input is increased.
Consider the production function from earlier: Quantity of Haircuts 20 15 10 0+0 0 N 2 8 14 O Increasing marginal productivity O Constant marginal productivity O Decreasing marginal productivity 3 19 23 Labor (hours) 27 26 Total Product Curve From 1 labor hour up to 7 labor hours, what sort of marginal productivity does this production function have?
13. Suppose you have a production technology given by f(x1,x2) = min{2æ1, x2} and you are producing at the point where x1 = 10 and x2 = 20.
For function Y= 10+0.3x-0.006x2 suppose that price of the output is $5 and the price of input is $3 what level of input use will maximize the total value of the product
13. Suppose you have a production technology given by f(x1,x2) = min{2æ1, x2} and you are producing at the point where x1 = 10 and x2 = 20.
Given the following data on input and output levels. Suppose the output price is $5 and input price is $10. Find the values of AVP and MVP when X = 4: X 0 2 4 6 8 10 12 Y 0 100 250 450 600 700 750 $312.50 and $375 $20 and $375 $265.50 and $475 $20 and $750
Please help me
5. APK function is given by: APL=KL+4. At the moment producer uses 10 units of capital and 20 units of labor. a) Find formula for the production function and current output. b) Provide an interpretation of APL at current point c) What can be said about returns to scale in case of this production function? Explain.
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