4) If the marginal product of capital MPK > r, where r is the market rental rate for capital,the firmA. Should hire more capital until MPK = r.B. Should hire more labor until MPK = r.C. Should hire more labor until MPK = 0.D. Should fire more capital until MPK = r.%3D5)Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from1870 to 2010. From the Figure we learn that the level of per capita GDPA. Has almost doubled for the US from 1880 to 2020B. Was higher in the U.S. compared to the UK in 1880C. Was higher in China compared to Argentina in 2000.D. Increased by approximately 5 times in Japan from 1950 to 1970.Answer64,000U.S.32,00016,000Argentina8,000U.K.4,000Japan2,000S. AfricaChina1,00018801900192019401960198020002020

NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r.

4) If the marginal product of capital MPK > r, where r is the market rental rate for capital, the firm A. Should hire more capital until MPK = r. B. Should hire more labor until MPK = r. C. Should hire more labor until MPK = 0. D. Should fire more capital until MPK = r.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How much is the marginal revenue of the product of labor if the price of the product (P) is $ 12 and…

A: Marginal revenue of product = Price* Marginal Product

Q: Lesson 8 - Costs Question 10

A: Answer K = 0.25LExplanation:Approach to solving the question: Detailed explanation: Examples: Key…

Q: Suppose a firm produces according to the production function Q=3K/3L/3 and faces a wage rate of $5…

A: The Production function Q = 3K1/3L1/3 Wage rate(w) = $5 Rental rate of capital(r) = $2 Output price…

Q: For a producer under complete competition, the following production function applies. Q = F (K, L)…

A: Q = 4L L = 0.25Q When Q = 50, L = 12.5 Total cost (TC) = wL + rK TC = 10 x 12.5 + 5 x 4 TC = 125 +…

Q: 1. Consider a firm with Total Output function (Production Function) given by Q = 6L2 – 0.4L3, where…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: If the current capital is fixed at 1,600 units, how much labor should the firmn employ in the short…

A: Meaning of Production Function: The term production refers to the situation when the product…

Q: Differentiate between the Iso quant and Iso cost. If Iso quant is represented by Y = 1.7% K 25. and…

A: Isoquant is a line which shows the different combinations of two inputs which can produce the same…

Q: Co. operates in a competitive market. Its production function is q = Lα Kβ . The firm takes the…

A: The production function is the mathematical relationship between inputs and outputs.

Q: uppose that the production function is Yt = AtKt^(1/2) Lt^(1/2) where Yt is output, Kt is the stock…

A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…

Q: Suppose that the production Is given as follow: Q(N) = 22VN, where N = units of labor employed The…

A: Production function : Q = 22(N)0.5 Price of output = 10 Price of input = 15 Cost = Input price *…

Q: The following is output data for a firm. Assume that the amounts of all non-labour resources are…

A: The law of diminishing returns states that benefits or advantages acquired from something will…

Q: A widget manufacturer has a production function of the form q = LK + 3L. If the wage rate (w) is $4…

A: Production Function is Q=LK+3L Wage Rate(W)=$4 Rental Rate on capital(r)= $20

Q: Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20…

A: Marginal product is the change in total product due to an additional unit of input. Marginal…

Q: Consider the production function q = f(L,K) = ALªK®, where A, a, b are positive constants. For what…

A: The link between the amount of productive inputs (such as labour and capital) needed and the amount…

Q: When you have diminishing marginal returns to labor A. variable costs fall as more output is…

A: Labor is the physical, mental, and social effort used for producing goods and services in the…

Q: None

A: Step 1: Understand the ProblemThe firm wants to maximize profit in the short run, given a fixed…

Q: Please help

A: Production technologies or production function defines a relationship between the output and inputs.…

Q: - Refer to the information provided in Figure below to answer the question(s) that follow. Units of…

A: Isocost curve is the curve where each point of the curve shows the same total cost. The isoquant…

Q: Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100. If…

A: The objective of the question is to find the fixed cost in the short run given the production…

Q: The company A produces cars using three inputs, labour (L), capital (K)and talent (X). AČME's…

A: Production Function : Y = X0.5L0.25K0.25 In short run capital is taken to be fixed at, K = 9 So, Y…

Q: which of the following statements is true? A) The MP of labor is always negative at short run B)…

A: The marginal product of labor (or MPL) refers to a company's increase in total production when one…

Q: What will be the MRTSLK, if the quantity of labor used increases by one unit, the firm can give up 2…

A: MRTS or Marginal rate of technical transformation is the rate at which one input is substituted by…

Q: The marginal substitute rate of labor to capital is 0.4 and the marginal production of capital is 5,…

A: The MRTS {"marginal rate of technical substitution"} of labor to capital is described as the rate at…

Q: Consider the long-run cost minimisation problem, with L on the horizontal axis and K on the vertical…

A: A firm will minimise its cost at a point where marginal rate of technical substitution is equal to…

Q: 6. We have the production function, Q= f( K,L). Factor prices are r and w respectively and the…

A: Introduction we have a production function given as Q = f(K,L) Factor prices of the production…

Q: Consider the Cobb-Douglas production function: 1. Derive the conditional input demands. 2. Derive…

A: Answer to question 1 is:

Q: 38) In the short run, the marginal product of labor might increase initially as more workers are…

A: Marginal product is the output that is derived from the addition of one extra unit of input.

Q: Suppose the marginal product is maximized when the 10th worker is hired. Then the marginal cost…

A: Marginal cost:Marginal cost refers to the additional cost incurred by producing one more unit of a…

Q: Q48 If the marginal product of labor divided by the price of labor is less than the marginal product…

A: Marginal product of labor is defined as the change in the output caused by employing additional…

Q: Differentiate between the Iso quant and Iso cost. If Iso quant is represented by Y - 10.75 KM 25.…

A: Optimal combination of inputs is when MPL / w = MPK / r

Q: Increasing marginal returns to labor A) describe the portion of a total product curve where the…

A: Marginal returns refer to the amount of output generated by the producer when it employed an…

Q: A firm with Perfect Competition in the Labour Market and Perfect Competition in the Output Market.…

A: The perfect competition market is represented by multiple buyers and multiple sellers in the market.…

Q: Suppose the wage rate is $10 and the rental rate on capital is $20. Consider the total cost line…

A: An isocost line or total cost line represents various combinations of labor and capital which the…

Q: (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function…

A: (a) Labor(L) demand(dd) curve slopes-downward because its shows a negative-relationship between…

Q: (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function…

A: a) Downward sloping of labor demand curve can be explained with the law of diminishing returns.…

Q: XYZ Co. operates in a competitive market. Its production function is q = L^α K^β . The firm takes…

A: Labor and capital demand functions describe the relationship between the quantity of labor (L) and…

Question

4) If the marginal product of capital MPK > r, where r is the market rental rate for capital,
the firm
A. Should hire more capital until MPK = r.
B. Should hire more labor until MPK = r.
C. Should hire more labor until MPK = 0.
D. Should fire more capital until MPK = r.
%3D
5)
Figure 1 below shows the dynamics of per-capita GDP for six countries in ratio scale from
1870 to 2010. From the Figure we learn that the level of per capita GDP
A. Has almost doubled for the US from 1880 to 2020
B. Was higher in the U.S. compared to the UK in 1880
C. Was higher in China compared to Argentina in 2000.
D. Increased by approximately 5 times in Japan from 1950 to 1970.
Answer
64,000
U.S.
32,000
16,000
Argentina
8,000
U.K.
4,000
Japan
2,000
S. Africa
China
1,000
1880
1900
1920
1940
1960
1980
2000
2020

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume a firm has the following short-run production function: q(L) = L+6L2-1/2L3 If this firm is going to maximize profits in the short-run by producing a strictly positive level of output (q>0), what is the lowest level of labor (L) they would employ? A.) Minimum L=?
Say that a lumber firm is producing output (Q) in the form of trees. They hire lumberjacks (L), but have a fixed level of capital. There are no other inputs. Select the values that correctly fill in the table. L = number of lumberjacks Q = number of trees MPL = marginal product of labor 0 0 -- 1 4 2 10 3 12 4 13 5 13
Question 6 Profit maximization A firm faces the following production function q = 100L0.6K0.6 The wage rate, w, is $4.00 and the price of capital, r, is $2. 1. If the firm uses 100 units of capital how much labor should it use to minimize costs? 2. Does this production technology exhibit increasing, constant, or decreasing returns to scale? Why?
Only typed answer A firm has the production function Q = K^0.8L^0.2. The wage is W and the rental rate on capital is R. Derive the long-run demand functions for capital and labor. Using Lagrangian is optional.
please help
Question i A firm has a production fùnction given by Q = AL" K# and per unit prices of capital (K) and labour (L) are r and w respectively. %3D a. Find the Marginal Rate of Technical Substitution of labour for capital for this firm b. Ifthe firm seeks to minimize its cost and it is in the short run of production such that K = K find L and the short run cost function c. Suppose that the firm can now change all its inputs and it seeks to minimize its cost. Find the input demand functions for K and L; as well as the long run cost function
A firm uses capital and labour to produce widgets. In the short-run capital is fixed, while labour is variable. The short-run production function is X=-L3 + 24L2 + 240L Where X is the number of widgets produced in per week, and Lis the number of workers employed. Each worker works a 40-hour week. The wage rate is $12 per hour. Calculate the range of values for Lover which the firm is in stage I, stage II and stage III what is the minimum product price at which the firm will operate in the short-run? The product price, over which the firm has no control, is such that the firm's maximum possible pure profit $ 1096 per week. In order to achieve that level of profit it must employ 16 workers. How much is the firm's total fixed cost?
Lesson 8 - Costs Question 6
Solve the attachment.
Mainly concerned with how to answer part b.
If a firm has the the production function F(K, L) = min(3K, 4L) What is its contingent demand for labor, Le(w, v, q)? q 4w+3v q (b) 3w+4v (c) 1/31 (d) 1/1 (e) W when w 4v 3
Which of the following statements best describes the Diminishing Returns to Labor:Select one:Oa. Workers are paid less.as more of them are hired by the firm.Ob. Workers get paid less as they work more.Oc: The firm's output decreases as more workers are hired.Od. Each additional worker adds less to the production as the Marginal Product of Labor is decreasing.