Consider the production function of gadgets: Q = 2.9K12 L0.5where Q is units of output per month, K is hours of capital and L ishours of labour. Capital can be rented at $66 per hour, and labour%3Dcan be hired at $33 per hour. What is the maximum output for amonthly production budget of $18600?Answer:unitsDO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACHHE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TOVO DECIMAL PLACES, AND NO SEPARATOR FOROUSANDS.)

In the question above, it is given that : Production Function : Q = 2.9K1.2L0.5 K is hours of…

Answered: Consider the production function of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3.3
Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $2.00 in ingredients per pizza, $0.30 in electricity per pizza, $4,000 in restaurant rent per month, and $400 in insurance per month. Assume the pizza parlor produces 8,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ (Enter your response as an integer.)
Question 6 ▼ Suppose a Cobb-Douglas Production function is given by the following: P(L, K) = 10L0.9 K0.1 where L is units of labor, K is units of capital, and P(L, K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $100 and each unit of capital costs $700. Further suppose a total of $140,000 is available to be invested in labor and capital (combined). Units of labor, L = A) How many units of labor and capital should be "purchased" to maximize production subject to your budgetary constraint? Submit Question Units of capital, K = B) What is the maximum number of units of production under the given budgetary conditions? (Round your answer to the nearest whole unit.) Max production = Question Help: Video units
3.4
You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means.
You are given the production function: Q(K,L)=10KαLβ What is the average product of labour, holding capital fixed at K? Simplify fully
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?
Given the following data on input and output levels. Suppose the output price is $5 and input price is $10. Find the values of AVP and MVP when X = 4: X 0 2 4 6 8 10 12 Y 0 100 250 450 600 700 750 $312.50 and $375 $20 and $375 $265.50 and $475 $20 and $750
Q3, A firm operates with the following Cobb-Douglas production function where Q is output, L is labor hours per week, and K is machine hours per week. Cobb-Douglas Production Function: Q = 5(L1/3K2/3) The firm intends to produce 5,000 units of output per week by contracting employees for $40 per hour and renting machinery for $10 per hour. Determine the cost minimizing combination of labor and capital for the firm. Based on your solution in part (a), calculate the firm’s total cost of producing 5,000 units of output per week.
V1
The Cobb-Douglas production function for a particular product is N(x,y) = 60x0.7 0.3, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. Answer the questions (A) and (B) below. (A) If $800,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.

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