$30 and wage rate Let the production function be given by: q = 10(L^2)K, with rental rate v = w = $20. 1. How much K and L are employed to produce 11, 250 units of output? 2. Suppose that the firm wants to increase output to 19, 440 units of output, now how much Kand Lare employed to produce with minimize cost? 3. Suppose that in the short run the amount of capital is fixed at K = 10, what is the firm short run fixed cost? 4.Suppose that in the short run the amount

$30 and wage rate Let the production function be given by: q = 10(L^2)K, with rental rate v = w = $20. 1. How much K and L are employed to produce 11, 250 units of output? 2. Suppose that the firm wants to increase output to 19, 440 units of output, now how much Kand Lare employed to produce with minimize cost? 3. Suppose that in the short run the amount of capital is fixed at K = 10, what is the firm short run fixed cost? 4.Suppose that in the short run the amount

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

A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is variable. The firm’s production function is: X=-0.2L3 + 18L2 + 1620L. Where X is the number of units of the product per week, and L is the number of persons employed. A t what weekly output is marginal cost equal to average variable cost? if the price of the product is $0.20 per unit, what is the maximum weekly wage that the firm would pay rather than close down?
Economics A firm has the production function q = K0.25L0.25 , where K is capital, L is labor, and q is output. The price of capital is v = 4 and the price of labor is w = 4. [You may need this result: if Yα = Z. Then Y = Z1/α]. (i) Derive the firm’s short-run cost function if capital is fixed at K = 16. (ii) Derive the firm’s long-run cost function. (iii) Someone claims that the firm’s
can you solve for D E F please thanking you
Can you answer this question on pencil and paper. Thank you!
Suppose that a firm has a production function given by: q= 10 L² K. The firm has 10 units of capital in the short run. Which of the following will describe the marginal product of labor (MPL) for this production function? Select one: a. Constant Marginal Returns to Labor b. Increasing Marginal Returns to Labor O c. Decreasing Marginal Returns to Labor
I need this in words Not handwritten or no pic
6
I need answer typing clear urjent no chatgpt
1. Assume a daily production function for a firm is Q= min(3L, 4K) a, If L = 100 and K = 100 what quantity is produced? Explain why. b. What would be the cost-minimizing labor and capital combination for this firm to produce Q = 1200? (show your work) Labor = Capital = At this level of production from part b (Q-1200), if the wage rate is: w- $30 and the rental rate of capital is: r= $100, what is the total cost of production? (show your calculations) C.
dien There are two factors in a production function y = x 113 x₂¹1³. The market price of each unit ofy is p=3, and the factor prices are w₁=1 and W₂=2 for x₁ and X₂ respectively. variable (a). Calculate your cost function as a function of y if X, and x₂ are both barible factors. (b). Now derive the functions of average and marginal cost and plot them against quantity (C). Solve for your optional output of y. Calculate the ratio of two factors (X₁/X₂) (d). In the short run the fixed factor is set at X₂=1. What is the new optimal output level now?
Consider the following diagram showing a range of isoquants and isocosts, with labour measured on the horizontal axis and capital measured on the vertical axis. Assume that when the firm is producing in the short run, capital is fixed at K but capital is variable in the long run. K, Capital K A B Q3 Isoquant Q2 Isoquant Q₁ Isoquant L, Labour Which of the following can we conclude? O Only point B represents cost minimisation in both the short run and the long run, as it is on the short run expansion path, as well being the cost minimising point in the long run. Points A, B and C represent cost minimisation in the long run only. There are no points that represent cost minimisation in both the short run and the long run. Points A, B and C represent cost minimisation in both the short run and the long run. Points D and E represent cost minimisation in the short run only. Points A, B and C represent cost minimisation but only in the short run. Points D and E represent cost minimisation in…
3. Suppose a firm has the following production function q = LK4. Let the unit price of capital be 1 and the unit price of labour be w. a) Use the Lagrangian method to find the optimal number of each input used to produce an order of q'units b) Find the long-run cost function. c) How does the cost function change if the wage rate changes?