Consider a firm producing Smirnoff Mule which uses two inputs-machines and labor-toproduce output (Q). The amount paid to a unit of machine input is called rent; on the otherhand, the amount paid to the unit of labor is called the wage rate. If the wage rate is atP500/unit and the rent for the machine is at P1200/unit, given the following table:TABLE 2Output0 10 20 30 40 50 60 70Machine Inputs 30 30 30 30 30 30 30 30Labor Inputs60 110 150 210 310 450 6306. Compute for the firm's TV C, TFC, TC, AV C,AFC, AC, and MC. (Show your formulas).

The overall cost paid by a firm to create a given amount of a product or provide a service is…

Answered: Consider a firm producing Smirnoff Mule…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Suppose that the production function for a firm is given by the CES function q = f (z1, z2) = (z + z)/Y. Where z1 and z2 are the two inputs used by the firm. The inputs prices are respectively wi and w2 a. Set up the cost minimizing problem of the firm and derive the first order conditions for cost minimization b. Derive the conditional inputs demand functions for inputs 1 and 2 c. Derive the associated cost function for the firm
Please find the atttached photo.
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 3 1 4 3 2 90 3 3 160 3 4 200 3 5 230 3 6 250 3 7 260 3 8 265 A firm has the following production function: Q=f (L/K). It must pay $20 per hour of labor and rents its fixed inputs (K) for $30 per unit. Complete the following table and answer the questions that follow:
I am having trouble finding out the formulas to complete this question: The production function for a firm is q = -0.6L3 + 18L2K + 10L where q is the amount of output, L is the number of labor hours per week, and K the amount of capital. The wage is $100 and the rental rate is $800 per timeperiod. Using Excel, calculate the total short-run output, q(L), for L = 0, 1, 2, …, 20, given that capital is fixed in the short run and K = 1. Also calculate the average product of labor; APL, and the marginal product of labor, MPL. For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost , AC; and the marginal cost, MC. Using excel, draw the AVC, AC, and MC curves in a diagram. You will not be able to solve the total product curve for L as a function of output. So, instead construct a table. Headings: L q(L) APL MPL VC TC AVC AC MC w/APL w/MPL
QUESTION 7 A firm's production function given by Q=2KL where K, L and Q denote capital, labor, and output, respectively. The firm wants to produce an output of 32 units at a minimum cost. The wages and rent are $2. Show the solution graphically and find the value of capital and labor that the firm will use at the solution (Using symmetry, you can easily do this). Attach File Browse Local Files Browse Content Collection
BJO Ⓒ4 f(X₁, X₂) = (x₁² + X₂²) & 0
Assume that C(x) is in dollars and x is the number of units produced and sold. For the total-cost function C(x)=0.01x² +0.4x + 50, find AC and C'(x) when x = 60 and Ax = 1. AC $ (Simplify your answer. Type an integer or decimal rounded to two decimal places as needed) C'(x) when x= 60 is $ (Type an integer or a decimal) per unit
Maximizing profit with isoprofit curvesSuppose that you are starting up a lawn-raking business. All of your workers are required to supply their own rakes, so the only cost to you is hiring labor at an hourly rate. Suppose that the market price of raking someone's yard is $24 per lawn and the hourly wage is $18 per hour. The following graph shows the production function (PF) for your business.
A firm engaged in the manufacture of RTWS faces the short-run production function Q = 250L - 5L², where L is the number of units of labor and Q is the number of RTWs produced annually. d.) How many RTWS can be produced by the firm in a year if there are 10 units of labor? e.) Compute the marginal product of the 40th unit of labor. f.) How many RTWs can be produced by the firm in a year if there are 40 units of labor? g.) Sketch the graph of the production function.
A baker uses labor (L) and raw materials (M) to produce mini Muhlenberg Mule sugar figurines (q). The process is fairly simple as workers only must make the sugar mixture and pour the mixture into the mule molds. The baker’s production function is as follows f(L, M) = L 0.50M. Let wL and wM denote the prices of a unit of L and M, respectively. (a) Write the firm’s cost minimization problem if it wants to produce q units of output. (b) Write the Lagrangian function that describes the cost minimization problem. (c) Derive the long run conditional factor input demands for L and M as a function of wL, wM, and q; L ∗ (wL, wM, q) and M∗ (wL, wM, q). (d) Suppose wL = $25 and wM = $2. Determine the cost-minimizing combination of inputs if the baker wants to produce 200 mules. (e) Using wL = $25 and wM = $2 and the demand functions from part (c), write the firm’s long run cost function CLR(q).
Please see attached image for question. Please note that there is an overline above the "K" in the oven/captial equation (K = 1). It does not show clearly in the image.
20.

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