Given the production function Q=100 L.K and cost budget=1000JD ; w (price per unit of labor)=8;r (price per unit of capital) =1. find the optimal quantity of capital? a. 500 units b. 40 units Oc. 100 units d. 62.5 units

Q: Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio…

A: At optimum where production is maximised, marginal rate of technical substitution equals price ratio…

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Q: Suppose that firms face the following production function: Q = LAK^. Suppose also that price of…

A: Given production function :- Q = L1/4K3/4 w = 3, r = 9, Q = 120

Q: Adam operates a factory that produces beach towels. His current level of output equals 1000 towels…

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Q: To prepare do the question that I left with you, that is given the production function, TP= 2KL, PK…

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A: Marginal productivity is defined as the change in the total productivity due to change in the amount…

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A: Return to scale refers to the relationship between the inputs used to produce goods or services and…

Q: (4) w = 3. firm's production function is F(K, L) = 2√/K + L. Factor prices are r = 2 and (a) Find an…

A: The marginal product of labor represents the increase in output as a result of an increase in labor…

Q: A firm produces output according to the following production function: Q = F (K, L) = 4K + 8L (a)…

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Q: 1. 1 Example 1: Let y = F(l, k) = l¾k₹ be the production function, p = 30, w = 10, and r = 5. Find…

A: This problem could be solved by lagrangian function. The lagrangian function is a mixture of…

Q: True or False? This marginal cost function is the derivative of the production function.

A: We have, Cw1,w2,y=w113+w2133y2 The marginal cost  MC = Cyw,y It means the C(w1,w2,y) function is…

Q: A firm produces output according to the following production function: Q = F (K, L) = min{4K, 4L}…

A: The production function is a mathematical function looking to maximize the output level. The…

Q: Given the production function of F(K,L) = sqrtKL If the short run has a fixed K of 5 units, which…

A: Here the production function of F(K,L)=KL the short run fixed capital k=5 units so, F(K,L)=KL=5L…

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: The production function is f (L, M) = 5L1/2M1/2, where L is the number of units of labor and M is…

A: MRTS is amount of one input that needs to reduced ,so that one more unit of other input can be used…

Q: If the production function is Q = 30 + 22L + 44K, what’s the most you can produce with 9 workers (L)…

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Q: Is total cost 0 when the level of production is 0?

A: # We know that total cost is the sum of total fixed cost and total variable cost.

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Q: If the production function is Q = 30 + 22L + 30K, what's the most you can produce with 5 workers (L)…

A: As given Production Function Q = 30 + 22L + 30K Also K( capital) = 7 units L(workers) = 5

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A: Given  Production function  Q= L1/2K       .......... (1) To know the return to scale, we increase…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.