4. For production functions i) q = K0.25L0.25, %3D ii) q = K0.5Lº.5. iii) q = KL a) Assume w= $20 and v = $20, what are the long-run MC and AC equations? b) Tun the MC functions into firmlong-run supply equations. c) Graph the MC and AC functions. Assume that the price of output is $20, explain how the q = q(p = $20) might or might not be a profit-maximizing outcome and whether the

4. For production functions i) q = K0.25L0.25, %3D ii) q = K0.5Lº.5. iii) q = KL a) Assume w= $20 and v = $20, what are the long-run MC and AC equations? b) Tun the MC functions into firmlong-run supply equations. c) Graph the MC and AC functions. Assume that the price of output is $20, explain how the q = q(p = $20) might or might not be a profit-maximizing outcome and whether the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Consider a firm that produces a single output Q using two inputs, q₁ and production technology is the Cobb-Douglas: Q = 9tq². 2 - Let pi be the price of q1, and p2 be the price of q2. Assume that the price of the output Q is 1. (b) Find the effect of an input price p2 change on the optimal quantity, q2, of the input good 2 using the implicit function theorem.
Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 250 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in chicken is causing bacterial infections to spread around the world. The CDC's announcement will cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the CDC's announcement. PRICE (Dollars per pound) 78°F Sunny 10 9 8 Supply chicken at every price. In the short run, firms will respond by Demand F5 H Demand Supply O J (?) [+ & F9 O F10 F11 F12 Fn
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On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
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4. The demand equation for a product is p = a – bq and the cost function is C(q) = kq² – rq where p is the price of the product, q is the quantity sold and a, b, k and r are positive constants. Find the equilibrium quantity in terms of a, b, k and r.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Question 3 Mr. Stonewall has to set up a firm that produces calculators competing with the likes of Casio and Sharp calculators. In order for to estimate the amount of labour and capital needed to maximise profit in the long run, Mr. Stonewall has employed you to help him in this regard. Currently, the competitive wage rate is set at ¢4 per unit of labour and capital is rented at ¢5 per unit. The forces of demand and supply in the industry has also set the equilibrium price of calculators at ¢0.8 per unit. Suppose the production function of Mr. Stonewall's firm is given as Q 20K0.5 LO.5 + 7.5 and the firm total cost of production is ¢1690. Find the optimal levels of capital and labour needed to optimize output. The maximum profit of the firm at the optimal levels of labour and capital. 11.
You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50. Also that your estimated supply function for cowpea is as follows: QS = -25 + 3.5PC -1.5Pf – 0.5Pg + 0.25R Where Qs is the quantity supplied of cowpea in bags, Pc and Pg are as defined above, Pf is the price of fertilizer per bag, R is the amount of rainfall (in inches). If Pf = GH¢10, R= 40 inches and Pg= GH¢31.00 Find the resulting supply function for cowpea and determine the equilibrium price and quantity.…
demand is (are) created by customers and include(s) the demand for finished products and replacement parts? Dependent Independent Both dependent and independent Neither dependent nor independent
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4. For each of the following production functions, write the equation and graph the supply curve of the firm if w=20 and r=50 When the price of output is $20, how much will the firm offer to the market and what are the profits of the firm? a. Q = 10 K^.2L^.5B^.1 in the long-run with capital flexible. B is the amount of Building Space employed, which is held fixed at 1 unit in both the long-run and the short-run and has a price of $100 per unit. b. Q= (4K^.6 + 8L^.6)^ 1.25