er's ownership land rental ecropping r E's production function is y = 20 x VT (Yis the final output, Lis labor input) ng to theory, E's effort will be the lowest under which ownership? ( you should be able to answer this question without calc ng to theory, E will be facing the lowest level of risk under which land ownership? ng E is working under a fixed land rental contract, with a yearly rent of 50. His twin brother F, who has exactly the same pro , is working with a different landlord who charges 20% of the yearly revenue. Why? calculation) What is farmer E's profit function? calculation) What is his brother F's objective function? How is the optimal effort defined? ( only explain the concept) calculation) How much labor would E invest in his land ( He knows exactly how his profit function looks like ) ? nuch profit could he make under optimal effort? Assume his twin brother F doesn't know how to optimize his resource like E, instead, F decides to just copy E's behavior (I mount of effort into his land as E). Will this decision bring F the same level of profit as E? calculation) E decides to help his brother out by suggesting a proper effort level based on F's sharecropping contract, what suggested labor input be?

er's ownership land rental ecropping r E's production function is y = 20 x VT (Yis the final output, Lis labor input) ng to theory, E's effort will be the lowest under which ownership? ( you should be able to answer this question without calc ng to theory, E will be facing the lowest level of risk under which land ownership? ng E is working under a fixed land rental contract, with a yearly rent of 50. His twin brother F, who has exactly the same pro , is working with a different landlord who charges 20% of the yearly revenue. Why? calculation) What is farmer E's profit function? calculation) What is his brother F's objective function? How is the optimal effort defined? ( only explain the concept) calculation) How much labor would E invest in his land ( He knows exactly how his profit function looks like ) ? nuch profit could he make under optimal effort? Assume his twin brother F doesn't know how to optimize his resource like E, instead, F decides to just copy E's behavior (I mount of effort into his land as E). Will this decision bring F the same level of profit as E? calculation) E decides to help his brother out by suggesting a proper effort level based on F's sharecropping contract, what suggested labor input be?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When making a choice between factor inputs such as labor or equipment, or between two different kinds of equipment, a profit maximizing firm will choose O the cheaper, lowest price item, regardless of its productivity O the highest productivity item, regardless of its price O the item which yields the most productivity per dollar of price O none of the above
urgent i will 5 upvotes both answers.
The Al-Maskri Company in Seeb makes flower pots and receives RO 10 for each finished pot. Mr. Al-Maskri’s only factors of production are flower pot machine operators (labor) and a small building where the laborers work from. The number of flower pots per day the company produces depends on the number of employee-hours per day as shown below. The wage is RO 15 per hour. Number of pots per day Number of employee-hours per day 0 0 5 1 10 2 15 4 20 7 25 11 30 16 35 22 Al-Maskri’s daily fixed cost for the flower pot making machine and building is RO 60. Complete the following Table showing total revenue, variable cost, total cost, and daily profit for various quantities of daily flower pot production. Quantity of Pots per day Total Revenue RO per day Variable Costs RO per day Total Costs RO per day Profit RO per day 0 0 0 60 -60 5 75 -25 10 15…
3. Theo employs labor at a competitive wage (W) of $3 per unit, and he employs capitalat a competitive rental rate (R) of $6 per unit.a. State the cost-minimizing rule. You must provide both a written statement of it, and state it as anequation.b. At Theo’s current combination of labor and capital, the marginal product of labor (MPL) is twiceas large as the marginal product of capital (MPK). Is Theo currently employing the optimal ratio oflabor and capital? If not, how should he adjust his hiring of labor and/or capital? Explain.
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