5. Suppose a firm's production function is given by: q=10√/Ef + Em where Ef and Em are the number of female workers and male workers employed by the firm respectively. Suppose the market wage for female workers is $10, the market wage for male workers is $20, and the price of each unit of output is $100. Which of the following statements is correct? (a) Male workers and female workers are perfect complements in this firm's pro- duction function. (b) Male workers and female workers are not perfect substitutes in this firm's production function. (c) The marginal product of a male worker is higher than the marginal product of a female worker. (d) The marginal product of a male worker is 10 E₁+Em (e) The marginal product of a female worker is 5 Ef+Em (f) The profit maximizing inputs by a non-discriminating firm consist of one third female workers and two thirds male workers. (g) The profit maximizing inputs by a non-discriminating firm consist of two thirds female workers and one third male workers. (h) The profit maximizing inputs by a non-discriminating firm consist of equal numbers of male and female workers.

5. Suppose a firm's production function is given by: q=10√/Ef + Em where Ef and Em are the number of female workers and male workers employed by the firm respectively. Suppose the market wage for female workers is $10, the market wage for male workers is $20, and the price of each unit of output is $100. Which of the following statements is correct? (a) Male workers and female workers are perfect complements in this firm's pro- duction function. (b) Male workers and female workers are not perfect substitutes in this firm's production function. (c) The marginal product of a male worker is higher than the marginal product of a female worker. (d) The marginal product of a male worker is 10 E₁+Em (e) The marginal product of a female worker is 5 Ef+Em (f) The profit maximizing inputs by a non-discriminating firm consist of one third female workers and two thirds male workers. (g) The profit maximizing inputs by a non-discriminating firm consist of two thirds female workers and one third male workers. (h) The profit maximizing inputs by a non-discriminating firm consist of equal numbers of male and female workers.

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

22. Suppose a firm has a production technology given by the Cobb-Douglas production function: Q = f(L,K) = AL¤ KB with a + ß 0, where L and K represent labour and capital respectively and A is technology. (a) Does this production function exhibit constant, increasing or decreasing returns to scale? Explain how you would be able to see this on an isoquant graph. (b) Set out the unconstrained profit maximisation problem (assuming input prices are w for labour and r for capital and the output price is p) and then solve for the unconditional input demand functions for capital and labour and find the firm's supply function (c) Now set up the cost minimisation problem and solve for the conditional labour and capital demands. What is the difference between the unconditional input demand functions from part (b) and the conditional input demand functions you have just derived? (d) Give an expression for the total cost function (no need to simplify) and explain how the average and marginal cost…
B. Suppose that your production process is characterized by the production function x = f(e) = 100 In ( + 1). For purposes of this problem, assume w > 1 and p > 0.01. a. Set up your profit-maximization problem. b. Derive the labor demand function. C. The labor demand curve is the inverse of the labor demand function with p held fixed. Can you demonstrate what happens to this labor demand curve when p changes? d. Derive the output supply function. e. The supply curve is the inverse of the supply function with w held fixed. What happens to this supply curve as w changes? (Hint: Recall that In x = y implies e' = x, where e ≈ 2.7183 is the base of the natural log.) f. Suppose p = 2 and w profit will you make? = 10. What is your profit-maximizing production plan, and how much
Please don't switch the subject to Advanced Math. For some reason whenever the subject is switched to those two. I don't receive any help it is a bug. please help me thank you.
Suppose that a firm has production function F(L, K) = L^2/3 K^1/3 for producing widgets, thewage rate for labor is w = $400, and the rental rate of capital is r = $25.a) Suppose that the firm has received an order for Q = 120 units of output. Neatly specify this firm’s costminimization problem, using the particulars associated with this problem.b) Give two equations that an interior solution satisfies, tailoring your equations to the particulars of thisproblem.c) Solve the two equations for the firm’s optimal choice. Show your work.d) Determine this firm’s minimum cost of producing 120 units.e) Now suppose that the firm’s production goal is left as the variable Q. Come up with the firm’s costfunction C(Q). Show your work.
a firm that has the following production function: √（KL^2）Where, K and L are the units of capital and labour used in the production process respectively. a)Calculate the marginal products of labour and capital. b)What is the value of marginal rate of technical substitution when 4 units of capital and 3 units of labour are used?
Ma3. Please give only typed answer.
I don't believe part (b) was fully answered. Can you please solve it with more detail?
Suppose in the long-rung the production function of a competitive firm is Q=f(L,K)= L1/5 K 1/2 , where L is the amount of labor and K is the amount of capital. The cost per unit of labor is w and the cost of capital is r, which is the interest rate. The price per unit of output is p. Derive unconditional factor demand functions.
2. A firm combines two inputs 21 and 22 to produce an output y. The prices of the two inputs are wi and w2, while the price of output is p. To produce an amount of output equal to y, the firm spends the following amount (which depends on the input prices): () () 248 + . Is it possible that the firm is minimizing cost when producing q? Explain C (w₁, W2, y) = (y) ats 48 A (w₁) ars. (W₂) a+s . If the answer to the previous question is positive, can you compute the conditional input demand functions? • How do your previous answers change if w₁ and we simultaneously double?
. In the short run, labor is a hat-making firm’s only variable input. Wage rate is $5.00/hour. The firm currently employs a certain amount of labor H (hours), such that the marginal product of labor is 10 hats per worker-hour, and average product is 15 hats per worker-hour. MPL(H) = 10; APL(H) = 15. (Note: marginal and average products of labor for this firm are not constant. 10 and 15 are their values at a particular point, H, not everywhere.) What is the marginal cost of a hat for that firm?
Assume that the production function for competitive firm is given by F(L)=9L1/3, where L is the number of units of labour used in the production process. Suppose that the cost per unit of labor is $3 and the price of output is $9 per unit, how many units of labor will the firm hire?
1. Suppose that a producer has the following production function: Q = KL'5 Where Q is output, and L and K are man-hours and machine-hour the two inputs used in the production process. 1A) Set up the cost minimization problem as shown in class