Consider the production function of widget: Q= 23K"^L°.8, where Q is units of output per month, K is hours of capital and Lis hours of labour. Capital can be rented at $53 per hour, and labour can be hired at $26 per hour. What is the maximum level of output for a monthly production budget of $39100? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO 2 DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)

Consider the production function of widget: Q= 23K"^L°.8, where Q is units of output per month, K is hours of capital and Lis hours of labour. Capital can be rented at $53 per hour, and labour can be hired at $26 per hour. What is the maximum level of output for a monthly production budget of $39100? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO 2 DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)

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. The following production function is used to produce wheat, q, from capi- tal, K, and labour, L: q = f(K, L) = «³K/3 + B³L/3 a) Describe the role of a and B in this production function. b) Derive the slope of an isoquant for this production function and in- terpret your result. Draw the isoquant in (K L) space, labeling where appropriate. The drawing does not need to be exact, but the curvature needs to be approximately correct. Explain why under- standing the curvature is so important. | c) Does this production function follow the "Law of Diminishing Marginal Returns"? Show your work and explain your answer.
uppose a Cobb-Douglas Production function is given by the following:P(L,K)=60L^0.8K^0.2where LL is units of labor, KK 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 $900 and each unit of capital costs $3,600. Further suppose a total of $900,000 is available to be invested in labor and capital (combined).A) How many units of labor and capital should be "purchased" to maximize production subject to your budgetary constraint?Units of labor, LL = Units of capital, KK = 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 = units
Consider a production function Q = (K.5 + L.5) 2 Does this production function exhibit Increasing, Constant, or Decreasing returns to scale?
Q = a,H + a,L +a,H² +a¸L² +a‚HL , where a,>0 2. Q = aH " L, where a, a, y> 0 a) Derive the equation of the relevant Isoquant. b) Find out whether the production function is well behaved.
I need all parts of the question answered, thank you.
RBW produces light sticks for one of their legendary girl groups, Kara. Suppose that RBWuses capital, K, and labor, L, to produce the light sticks. The production function is given as: Q(K,L)=2K0.75L0.51. Identify if RBW’s production function is increasing, constant, or decreasing returns to scale with a brief explanation. Also, solve for the company’s cost minimization problem by providing conditional demand functions of labor and capital, with respect to their input prices. Assume that w is the wage of labor and r is the rent cost of capital.2. Suppose that RBW is preparing for a mini-fan meet for the group’s “When I move” mini-album launch and that they have to provide 200 light sticks. The wage of labor, w, is $6.00 and the cost of capital, r, is $2.00. Determine how much labor and capital they have to use and the total cost of producing the light sticks.
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The following equations represent the long-run production functions for four different technologies, where capital and labor are both variable inputs. For each function, indicate whether it exhibits increasing, decreasing, or constant returns to scale. Clearly show your derivations. (Note that in parts a and c, the exponents are decimals.) f(L,K)= 8L²K4 b. f(L,K)= L+7K c. f(L,K)= L³K d. f(L,K)= 4L+K? а. с.
QUESTION 1 For the production function Qs = K0.6L0.7 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
1. Given the production function: q = 2KL, (a) Fill in the table below which has information on the short-run production function, the marginal product of labor (MPL), and the average product of labor (APL) if capital is held fixed at 3 units in the short-run. Labor Quantity of Output (MPL) (APL) 0 1 4 9 16 25 (b) Plot the short-run production function. (c) Plot the marginal and average products of labor on a new graph. (d) Does the law of diminishing marginal returns apply? If so, at what level of labor do diminishing marginal returns set in? (e) What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL)? (f) If the amount of capital increased to 6 units, what would happen to your graphs in part C)?
oj Consider the Cobb-Douglas production function P(L, K) = 6L0.6 K04_ Find the %3D total units of production when 19 units of labor and 12 units of capital are invested.
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