A firm uses a production function of the form Y=z*K^0.33*Nd^0.67 and chooses labor input Nd to maximize profits taking the wage rate w that it pays per unit of labor as given. First, write down the profit function of the firm. Assume z=10, K=100, and wage w = $20. The government now introduces a wage subsidy to help out the firm. The wage subsidy s = $4 per unit of work. Given this subsidy solve for the new optimal output level of the firm. Y* =

Q: Consider a price-taking firm whose production function is given by q = 3 L1/5 K1/9 where  L and K…

A: The production cost per unit, or Average cost, is determined by dividing the entire amount by the…

Q: The Brain Bucket Company (BBC) produces helmets for winter sports. It has production facilities in…

A: Given,The production function for the Toronto facility is-The production function for the Winnipeg…

Q: The long-run cost function of one of the identical carrot-producing firms is C(q) = 45q-q² +0.01g³.…

A: The entire amount of an item or service that consumers demand during a specific period of time is…

Q: A supply curve which is partaken to the horizontal axis suggests that

A: The markets are the place where the buyers, or the consumers interact, and meet with the sellers.…

Q: Suppose that a production function F(L, K) is homogeneous of degree 3, and that the long run output…

A: It is given that production function is homogenous of degree 3 .And ,  we have to proove that  it…

Q: A firm produces its product using only labor Its production function is Q= 20L -², where Q is the…

A: The production function is given as Q = 20L - L2 Wage rate = $13 /hour Market Price = $5/hour

Q: 2. The market for a slice of pizza in Oakland is highly competitive. The market demand for a slice…

A: In short run equilibrium firm can earn positive, negative or zero profits. But it will shut down its…

Q: 2. Suppose the firm is producing using q = f(KL) = (3/2)K^(1/3) L^(2/3) where q = a firm's output, K…

A: MRTS is rate at which one factor of production is decreased in order to maintain the same level of…

Q: A firm can produce output using three inputs and the following production 111 technology: q=x¹x¹x.…

A: A price-taking firm is one that cannot decide the price on its own. It takes the price as given.…

Q: Exercise: A firm produces output according to the following production function: q = A K1/4 L1/4 The…

A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…

Q: 1.XYZ Co. operates in a competitive market. Its production function is q = LαKβ. The firm takes the…

A: (a) The firm’s production function is, q = f(L,K) = L^α*K^ꞵ  The firm's cost function is, C = w*L +…

Q: Consider a firm with a production function given by y = a ln x1 + ß lIn x2 with a, ß E (0,1) which…

A: The production function shows the technical relationship between input factors and output. It can be…

Q: Consider a price-taking firm whose production function is given by q = 3 (L-9)1/5 (K-5)1/9 where…

A: According to the production function, for zero output, the firm has to atleast employ 9 units  of…

Q: A firm has the production function Q 20K02108, where Q measures output, K represents machine hours,…

A: A production function specifies how much output may be generated from a given set of inputs such as…

Q: A firm has a production function Q in function of K and L that can be written as follows: Q = 2/K/L…

A: Here, we have Production function,  Q=2KL or Q=2K0.5L0.5 Rental rate of a unit of capital is given…

Q: Fill out this chart to show the MPP = marginal physical product and the MRP = marginal revenue…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: 2. Consider the cost function 3 e (w), wa, q) = šu w The firm uses two inputs z1 and z2 with input…

A: Using the shephard lemma we can get the input demand functions by differentiating cost function with…

Q: Suppose a firm’s production function is given by q = z1^0.2 * z2^0.3 . The market

A:

Q: FInd the profit maximizing levels of K and L as functions of r,w, and p. b) Suppose that r = w= $1…

A: Profit maximization is the process that helps to regulate the prices, input, and output level of the…

Q: A firm has the following Cobb-Douglas production function: q = LªK!-a, where 0 < a <1 is a…

A: Rental cost of capital = r = $10 Wage of labor =w = $20 Capital quantity, K = 1 The production…

Q: Assume that the labor supply curve is S(w) = w-20 and the demand curve is D(w) = 40 w/2. Suppose…

A: Labor demand: It refers to the number of laborers hired for production at a specific period. The…

Q: A firm has a linear demand function for it's product.When the price of the product is sh.20,the…

A: The price of product is given as 20 and the quantity demanded at that price is 40 units.The price…

Q: A perfectly competitive firm has the following input requirement set v(y)(x1, x2): ax1+ bx2 y}. If…

A: The minimumized cost production means to use the inputs and their combinations in such a way that…

Q: Find the profit function for the Cobb-Douglas production function f(x₁, x₂) = Ax¹x2² with A > 0, α₁,…

A: The Cobb-Douglas production function is the total input used to obtain a specific output level in a…

Q: Suppose the profit maximizing firm sells the same good in two individual markets that it is able to…

A: There are two separate markets, market 1 has demand equation P1 =25-2Q1and market 2's demand…

Q: A firm has a production function Q in function of K and L that can be written as follows: Q = 2/K/L…

A: The production function is a model that expressed the relationship between inputs (like labor and…

Q: Suppose a price taking firm’s production function is given by q= √L, where is labor. When the wage…

A: Given  Production function q=L          ... (1) Wage rate =1.5

Q: 4- A noncompetitive firm with the production function Q=0.5-√ī faces the following demand function…

A: Profit refers to the revenue that a firm or seller of a good or service earns over and above what it…