Consider a firm that produces output (y) using only two inputs (A and B). The firm has a perfect substitutes production technology and a productionfunction of the formf(A, B) = 5A + 8B.%3DSuppose the firm is currently using 200 units of input B.What is the marginal product of inputA when A100?500What is the marginal product whenA150?750Give your answers to two decimal places.

Two inputs are perfect substitutes when only one of them is enough to produce output.

Consider a firm that produces output (y) using only two inputs (A and B). The firm has a perfect substitutes production technology and a production function of the form f(A, B) = 5A + 8B. Suppose the firm is currently using 200 units of input B. What is the marginal product of input A when A = 100? 500 What is the marginal product when A = 150? 750 Give your answers to two decimal places.

Consider a firm that produces output (y) using only two inputs (A and B). The firm has a perfect substitutes production technology and a production function of the form f(A, B) = 5A + 8B. Suppose the firm is currently using 200 units of input B. What is the marginal product of input A when A = 100? 500 What is the marginal product when A = 150? 750 Give your answers to two decimal places.

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

1/2 Consider a firm with the production function ƒ(x₁, x₂) = x¹/²x₂. The price of the two inputs is ₁ = 2 and w₂ = 1. If x₁ = x₂ = 16, the marginal product of input 1 is When ₁ is increasing and 2 stays the same, the marginal product of input 1 is Constant Decreasing Increasing This production function has Constant returns to scale Decreasing returns to scale O Increasing returns to scale None of the other answers is correct Does the production function have a diminishing technical rate of substitution? No Yes
Consider the following production function: q=100L0.8K0.4 Currently the wage rate (w) is $2.00 and the price of capital (r) is $4.00. If the firm is using 100 units of capital in production, how much labor should be employed to minimize costs? Labor input = units. (Enter a numeric response using a real number rounded to two decimal places.)
A firm operates in the short run with the production function Q = 10 K0.5 L 0.5, where Q is output, K is capital, and L is labor. The price of capital is $100 per unit, and the wage rate is $50 per unit of labor. How many units of capital and labor should the firm use to minimize its total cost while producing 400 units of output?
The short run production function of a competitive firm is given The short-run production function of a competitive firm is given by f (L) = 6L2/3, where L is the amount of labor it uses. (For those who do not know calculus—if total output is aLb, where a and b are constants, and where L is the amount of some factor of production, then the marginal product of L is given by the formula abLb−1.) The cost per unit of labor is w = 6 and the price per unit of output is p = 3. (a) Plot a few points on the graph of this firm’s production function and sketch the graph of the production function, using blue ink. Use black ink to draw the isoprofit line that passes through the point (0, 12), the isoprofit line that passes through (0, 8), and the isoprofit line that passes through the point (0, 4). What is the slope of each of the isoprofit lines? (b) How many units of labor will the firm hire? (c) Suppose that the wage of labor falls to 4, and the price of output…