4. Suppose a firm makes a single output using a single input. Think of the input as labor. Denote quantities of these outputs and inputs by q and I respectively. Suppose that the firm's production function f is given by f(10 = 0 if I < 1 and f(1) = 1-1 otherwise. Clearly draw a diagram of this firm's production set. Be sure to label the axes.

4. Suppose a firm makes a single output using a single input. Think of the input as labor. Denote quantities of these outputs and inputs by q and I respectively. Suppose that the firm's production function f is given by f(10 = 0 if I < 1 and f(1) = 1-1 otherwise. Clearly draw a diagram of this firm's production set. Be sure to label the axes.

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

Question 1. Suppose a small firm employs Capital (K) and labour (L) at its production of output. The production function of the firm is: q = -56³ + 10L²K + 100LK0.5. Assume that K-25 in the short run. a. What is its short-run production function? b. What are the firm's marginal product of labour and average product of labour in the short run? c. In the short run, when marginal output is maximized, what is the value of L? d. Calculate the short-run elasticity of output with respect to labour when L=10 and K-25 (Hint: the firm's elasticity of output with respect to labour in the short run is a function of marginal product of labour and average product of labour)
A firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has Select one: a. decreasing returns to scale and increasing marginal product for factor x and y. b. None of the above. c. increasing returns to scale and diminishing marginal product of factor x. d. constant returns to scale. e. decreasing returns to scale and diminishing marginal products for factor y.
I need the asnwer of g
Suppose that a firm has a production function given by: q= 10 L² K. The firm has 10 units of capital in the short run. Which of the following will describe the marginal product of labor (MPL) for this production function? Select one: a. Constant Marginal Returns to Labor b. Increasing Marginal Returns to Labor O c. Decreasing Marginal Returns to Labor
2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 3 15 K=2 10 K=3 16 K=4 20 25 28 30 31 (i) 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? 8 15 21 12 19 25 22 28 17 24 30
do fast all answer.
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?
1. Assume that the production of wine requires land (T) and labor (L) and it follows diminishing returns to scale. This would mean that as you increase the labor input, keeping land fixed, the marginal product of labor would: a) Remain the same b) Increase c) Decrease d) Increase first and then decrease
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.
3. The Chipper Cookie Company's output is given by the Cobb-Douglas Production function P = 120L0.7 K0.3, where P is the number of units produced when Lis the amount spent on labor and K is the amount spent on capital. a. What is the production if L = 600 and K = 600? b. Find the marginal productivities. c. Evaluate the marginal productivities with L= 600 and K = 600. d. Interpret the meanings of the marginal productivities found in part c. e. If their budget is $1200 then there is a constraint L+ K = 1200. Use Lagrange multipliers (^) to find the values of L and K that will maximize production and find the maximum production f. Find and interpret 2 for this problem. only need part e and f!
Show illustration and explain the special case of production functions "Fixed proportions production function."
1. What should the firm do if the marginal product obtained from the last dollar spent on capital is smaller than the marginal product derived from the last dollar spent on labor and why? Graphically illustrate.