5. A firm uses capital and labor in its production process. The marginal roduct for the last unit of labor is 5, the marginal product for the last unit of apital is 10, and the wage is $10. At what cost of hiring each unit of capital ould the firm be minimizing the cost of the current output? 0/5 a. $5 )b. $10 O c. $15 O d. $20

Q: The firm Greench produces Nutella. The production function is given by the following: Nutella = min{…

A: step: 1To find the optimal amount of labor that the firm should hire, we can use the concept of cost…

Q: Each extra worker produces an extra unit of output up to six workers. After six, no additional…

A: Total production refers to the output produced by the factors of production. Marginal output refers…

Q: Let f be a production function such that that, for a fixed k, the marginal product of labour starts…

A: In the above diagram, we can see that: At point B, when AP is maximum then AP intersects MP (AP=MP)…

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A: 8 adminstrative officers would be hired.

Q: Tim works 51 hours per week, and his wage is $20 per hour.  If his wage increases to $40 per hour,…

A: Initially, the wage rate is $20 per hour and Tim works 51 hours per week. Now the wage rate…

Q: Consider the table below that describes the production function for a good (Q) in terms of inputs…

A: Production function shows us various quantities of factors of production(labor, capital) used to…

Q: „1/3 Consider the production function y = (0.5x +0.5a). Suppose the firm wants to minimize the cost…

A: When the objective of the firm is Cost Minimization, then the value of the inputs is calculated…

Q: Determine whether each of the following is an explicit cost or an implicit cost :a. Payments for…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Say the marginal product of labour in production is 4 and the average product of labour is 7. Then,…

A: Marginal product of labor refers to an increase in total product because of addition of one more…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

Q: The production function for a firm is q=−0.6L^3+18L^2 K+10L where q is the amount of output, L is…

A: A production function is a mathematical depiction of the relationship between inputs and outputs in…