A firm's production function is Q = 100L.0 K-4. The firm's input prices are PL = $40 and PK = $30. The firm wishes to produce Q = 3,000 units of output andminimize the cost of production. How much labor (L) should the firm employ?O A. L=20.96.O B. L=31.45.O C. L=34.26.O D. L=38.45.O E. L=41.22.QUESTION 2A firm estimates its production function as Q = -2.4 + 20*L -.5*L2 + 30*K -1.00*K2+ 15*F -.3*F2. Total cost is TC = $2*L + $2.5*K + $1.75*F. The firm wishes to produce 400 units of output. Use Excel to find the cost minimizing amounts of L, Kand F. How much F (Fuel) should the firm use?O A. F=7.90.O B. F=9.58.O C. F=10.75.O D. F=12.63.O E. F=14.88.

"Since you have asked multiple questions, we will solve the first question for you. If you want any…

A firm's production function is Q = 100L-6 K-4. The firm's input prices are PL = $40 and PK = $30. The firm wishes to produce Q = 3,000 units of output and minimize the cost of production. How much labor (L) should the firm employ? O A. L=20.96. O B. L=31.45. O C. L=34.26. O D. L=38.45. O E. L=41.22.

A firm's production function is Q = 100L-6 K-4. The firm's input prices are PL = $40 and PK = $30. The firm wishes to produce Q = 3,000 units of output and minimize the cost of production. How much labor (L) should the firm employ? O A. L=20.96. O B. L=31.45. O C. L=34.26. O D. L=38.45. O E. L=41.22.

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

6:20 PM | 0.4KB/s D O 3. Suppose that the production function is Q- L07%K©25, a) What is the average product of labor holding capital K fixed. b) What is marginal product of labor? c) What is marginal product of capital? d) What is MRTS? VX
Question 19 widget-manufacturing The production function for a firm is given by q = 9K0.5L0.5, where q is the number of widgets produced each hour, K is the number of specialized staplers (which is fixed at 4 in the short run), and L is the number of employees. What is the marginal product of labor at L = 9? O 18 O 3 none of the above
20
4) Suppose that a firm's production function is Q = Lº.4K0.6. The cost of a unit of labor is $8 and the cost of a unit of capital is $12. Write firm's long run cost function. Calculate the slope of isocost line. Calculate marginal rate of technical substitution. d. Suppose firm decides to produce 50 units, what is the cost minimizing combination of these two resources (labor and capital)? a. b. C.
A perfectly competitive firm's production function is Q=4LK where Q is the amount produced, L is the amount of labour hired and K is the amount of capital used. P is the price that the firm gets for its product. What is the marginal revenue product of labour? O 8PK O 4L O 4PK O PL
if marginal product is given by 500 - 5Q4 find the value of Q where marginal product is at its maximum. Select one: O 1000. O 1/5 O 500. O5. O 100.
Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 0 1 2 3 10 units 18 units 20 units $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O C. $20 O d. $30 O e. $50
O O c. 3 d. 2 Table 13-3 0 1 2 3 4 Refer to Table 13-3. At which number of workers does diminishing marginal product begin? O a. 1 O b. 4 Labor (Number of workers) (Units) (Dollars) Output Fixed Cost Variable Cost Total Cost (Dollars) 0 20 40 60 80 0 90 170 230 240 50 50 50 50 50 (Dollars) 50 70 90 110 130
Workers Total Product Total Cost (per day) (units per day) ($) 100 10 120 2 18 140 3 24 160 29 180 5 32 200 Using the data in the above table, the fixed cost of producing units per day is O a. $100 O b. $20 O. S0 O d. None of the answers is correct
You are an employer seeking to fill a vacant position on an assembly line. Are you more concemed with the average product of labor or the marginal product of labor for the last person hired? O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns. O B. The average product of labor because productivity is maximized when average product is maximized This determines the output where revenue and profit are maximized. O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by hiring an another worker, which can be compared with the cost of hiring an another worker
Consider a production function given by y = min{4L, K}. The price of one unit of Lis $1 and the price of one unit of K is $1. If the firm wishes to produce 16 units of output, how much does it cost the firm? 28 O 24 20 O 32 O 36