Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of labor is w = 20 and the price of capital if r = 40. %| a- Derive the total cost curve for this production function. b- Derive the marginal cost curve for this production function. c- Plot the marginal and total cost curves for q = 1, 2, 3, 4, 5. What does it tell you about economies of scale for the production function?

Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of labor is w = 20 and the price of capital if r = 40. %| a- Derive the total cost curve for this production function. b- Derive the marginal cost curve for this production function. c- Plot the marginal and total cost curves for q = 1, 2, 3, 4, 5. What does it tell you about economies of scale for the production function?

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

5. Selpats produces pens with the production function f(k, l) = 200vkl. The price of capital is wk = 40 and the price of labor is wL = 10. (i) Determine the optimal input bundle for producing y pens in the long run and find the long-run cost function. (ii) Determine the optimal input bundle for producing y = 10,000 pens in the long run. (iii) Now suppose that capital is fixed at k = 25 in the short run. Find the short-run total cost function and the short-run marginal cost function. Explain the relationship between the short-run and long-run marginal costs when y = 10,000. (iv) Suppose that the price of output is p. Which value of y maximizes short-run profit? р.
The equation below is a production function, Q = (200)L + (100)K – (0.2)L2 – (0.1)K2 , where Q is output, L is labor and K is capital. What is the Marginal Product of Labor and capital of this function?
Consider the production function q=√L+8K^(3). Starting from the input combination (3,6), does the production function exhibit increasing, constant or decreasing returns to scale if inputs double?
Production function With a Cobb-Douglas production function of Y = K$L, What are the marginal product of capital and the marginal product of labor?
Consider a short run production function q = cL+K where the value for c=3, using L units of labour and K units of capital. a) Compute the marginal product of labour. b) Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
Question 4. Consider the production function y = L/2+vK where L is labor and K is capital. a) Is this production function monotonic? Is it convex? Find the formula for isoquants, and graph the isoquants for j = 1 and j = 4 into a diagram. b) Find the marginal product for labor, and the marginal product for capital. Find the TRS. Explain. c) Is this a constant returns to scale technology? Explain.
Suppose that a firm's production function is: a = 3L * K ^ 0.5 The cost of capital is $30/unit; the cost of labor is $20/unit. What is the minimum cost of producing q = 243 ?
Please answer fast please arjent help please ASAP pls answer fast
Explain the relationship between the production function and the average costs and marginal costs curve of a firm.
Consider the following production functions and match them to the word that describes their returns to scale. Production function A: F(L,K) = K²L Production function B: F(L,K) = 25K + 10L Production function C: F(L,K) = (KL)¹2 Production function D: F(L,K) = 5L² + L¹/2K1/2 Production Function A✔ Choose... Decreasing Production Function B Constant Production Function C Increasing Production Function D Choose.. +
Consider a short run production function q=5L+K, using L units of labour and K units of capital. Compute the marginal product of labour. 2. Does the production function exhibit decreasing, increasing or constant returns to scale?
Suppose a firm has the following production function Q (K, L) =K0.5 L0.4. Show mathematically whether the firm has increasing, decreasing, or constant returns to scale.