A firm produces output according to a production function: Q = F(K,L) = min {6K,2L}. a. How much output is produced when K = 2 and L = 3? unit(s) b. If the wage rate is $45 per hour and the rental rate on capital is $25 per hour, what is the cost-minimizing input mix for producing 6 units of output?

Q: How much labor would it hire if it could sell its output at $50 per unit?

A: Profit maximisation aims at maximising the profits of the firm.Profits are the revenue that the…

Q: Lesson 7- Production Question 6

A: Answer = The missing value is 5                   The Function is MPL  = 5L-0.5Explanation:Answer =…

Q: A firm producing hockey sticks has a production function given by q = 2vkl In the short run, the…

A: The total cost of production is the simple aggregate of the fixed cost and variable costs, in the…

Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is…

A: This is a long run production function since both the inputs of production labour and capital are…

Q: Suppose that the production function for Hannah and Sam's home remodeling business is Q=FL.K)…

A: The production function is the maximum set of output(s) that can be manufactured with a provided set…

Q: Write down the problem the car manufacturer solves to find the levels of 'K' and 'L' that minimize…

A:

Q: A firm has the production function Q(L, K) = √K+2√L. The price of one unit of capital is R> 0, and…

A: The CES production function is a mathematical representation used in economics and production theory…

Q: Consider a production process where flowers are grown (the output) using gardeners (labor) and…

A: Total cost is the sum of fixed cost and variable cost.Fixed cost is the cost that doesn't changes…

Q: When a firm has a fixed input, all of which must be used all the time, it said that input is?

A: The production function links physical amounts of inputs to physical quantities of output. Cost…

Q: Miguel and Jake run a paper company. Each week they need to produce 1,000 reams of paper to ship to…

A: Marginal rate of technical substitution is the ratio of marginal product of labor and marginal…

Q: needs to produce 500 cups of coffee and the price of capital is 40 euro per unit and the price of…

A: A production function gives the technological relation between quantities of physical inputs and…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: The cost-minimizing amount of labor refers to the level of employment where a firm achieves its…

Q: Suppose a short-run production function is described as Q=30L-0.05L^2 Where L is the number of…

A: Given: Q=30L-0.05L^2 We know, MPL = dQ/dL Therefore, dQ/dL = 30 - L  So, MPL= 30-L = 0 L=30 units

Q: Let a firm use labor (L) and capital (K) as its only inputs to produce an output, Q. The cost of…

A: 1.Isocost Line: An isocost line represents all possible combinations of labor and capital that a…

Q: 3. Suppose a KL; the price of capital is $10 and the price of labor $15. What combination of labor…

A: F (K,L) = KL2 -------> Production function Price of capital (r) = $10 Price of labor (w) = $15…

Q: Question 2. A firm has the production function q = L¹/2K¹/2. The firm can purchase labor, L at a…

A: Production function: This production function is in the form of Cobb Douglas production function so…

Q: 1.    A firm’s production function is Q = L1/2 K1/2 They have 16 units of capital (which is fixed in…

A: Inputs are resources that benefits the production unit in developing goods and services. In the…

Q: (A) Suppose the production function for T-shirts can be represented as q = L0.5 KO.5. Show that the…

A: Production Function for T-shirts:q=L^0.5*K^0.5 The marginal productivity of labor depicts how the…

Q: A firm has the following production function: Q=f (L/K). It must pay $20 per hour of labor and rents…

A: Figure -1 shows the AVC, AFC, ATC and MC curve as follows:

Q: A firm produces output according to a production function: Q=RK,L) = min [4K,4L). a. How much output…

A: The production function determines all the input bundles that produce the same output level.The…

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: . Apple uses labour and machines to produce iPhones according to the production function y = LM,…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: Suppose that a firm's production function is given by Q = 2KL, where Q is quantity of output, K is…

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

Q: The production function for a product is given by q = 100KL. Its marginal product functions are MPL…

A: The production function is the mathematical relationship between different bundles of inputs and…

Q: The firm's production function is given as follows: qx = f (Lx, Kx). qx represents the output…

A:

Q: Q₂ A production function is given by q = 500L + 700K. The price of capital is $120 and the price of…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: Is it true or not that the marginal cost  C′(x) is equal to the average cost at the critical points…

A: Average cost is the cost of making a single product calculated by dividing the Total cost by the…

Q: d. In the short-run, Prunella cannot vary the amount of land she uses. Plot the output as a function…

A: Factors of production is used in production process and production function establishes the…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A: