2 / 4100%6. Some farmer-centric publications and media outlets in North Americaoffer awards and prizes for farmers with the highest per-acre output of acertain crop. Using only the information from this class, why might gettingone of these awards actually be a bad thing?K LP.7. Consider the two-input production function q = S(K, L)Explain how a change in the output price influences the cost-minimizing%3Dchoice of L.8. In the standard cost-minimization problem, 2, the Lagrange multiplier,has no influence on the tangency condition. Can it have an impact on thecost-minimizing choices of capital or labour? Why or why not? If not, thenwhat is the role of A in the cost-minimization problem?9. Describe the influence of a change in output price on the conditional fac-tor demand functions.10. A worldwide energy supply shortage will likely drive up energy prices bysignificant amounts this winter. Using the material from the second halfof this course, explain the likely impacts on farmers. Relate your answerto the shape of production and cost functions and ease of input sybstitu-tion. 100%1 / 4- Consider a delivery company whose output is "number of packages deliv-ered" from two inputs, trucks and drivers. Assuming that only one drivercan drive one truck, draw (and correctly label) a production isoquant forthe delivery company.2. Consider a Cobb-Douglas production function, f(K, L) = Kª L* ,whereK is capital, L is labour, and (a, 6) are parameters. Describe in words howto choose capital and labour to maximize the production of output.3. Consider a canola producer with a two-input production function:VSNq = f(S, N) =S+ Nwhere S is seed and N is nitrogen. Calculate the marginal product of ni-trogen. Does the marginal product of nitrogen depend on the amount ofseed used? Explain.4. Assume that all you knew about a two-input production function,f(K, L), was the following:a2 f(K, L)> 0.Is that enough to know that profit maximization is or is not possible? Howknow? Explain.doyou5. When a farm faces a downward sloping demand curve, its production de-cision influences the output price. In a competitive market, the demand

Since all are distinct questions, we will answer the first one only. Please resubmit the other…

- Consider a delivery company whose output is ffnumber of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company.

- Consider a delivery company whose output is ffnumber of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

2 / 4
100%
6. Some farmer-centric publications and media outlets in North America
offer awards and prizes for farmers with the highest per-acre output of a
certain crop. Using only the information from this class, why might getting
one of these awards actually be a bad thing?
K LP.
7. Consider the two-input production function q = S(K, L)
Explain how a change in the output price influences the cost-minimizing
%3D
choice of L.
8. In the standard cost-minimization problem, 2, the Lagrange multiplier,
has no influence on the tangency condition. Can it have an impact on the
cost-minimizing choices of capital or labour? Why or why not? If not, then
what is the role of A in the cost-minimization problem?
9. Describe the influence of a change in output price on the conditional fac-
tor demand functions.
10. A worldwide energy supply shortage will likely drive up energy prices by
significant amounts this winter. Using the material from the second half
of this course, explain the likely impacts on farmers. Relate your answer
to the shape of production and cost functions and ease of input sybstitu-
tion.

100%
1 / 4
- Consider a delivery company whose output is "number of packages deliv-
ered" from two inputs, trucks and drivers. Assuming that only one driver
can drive one truck, draw (and correctly label) a production isoquant for
the delivery company.
2. Consider a Cobb-Douglas production function, f(K, L) = Kª L* ,where
K is capital, L is labour, and (a, 6) are parameters. Describe in words how
to choose capital and labour to maximize the production of output.
3. Consider a canola producer with a two-input production function:
VSN
q = f(S, N) =
S+ N
where S is seed and N is nitrogen. Calculate the marginal product of ni-
trogen. Does the marginal product of nitrogen depend on the amount of
seed used? Explain.
4. Assume that all you knew about a two-input production function,
f(K, L), was the following:
a2 f(K, L)
> 0.
Is that enough to know that profit maximization is or is not possible? How
know? Explain.
do
you
5. When a farm faces a downward sloping demand curve, its production de-
cision influences the output price. In a competitive market, the demand

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