Answered: If a firm has a Cobb-Douglas production…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Given Q=100k0.5L0.5 , C=1200 w=30 r=40 (a)Determine the quantity of labour and capital the firm should use in order to minimize the cost. (b)What is the level of output at this level.
(a) Find the conditional input demand function for inputs 1 and 2, as well as the cost function for this firm. (b) What is the firm's marginal cost when it is producing y units of output?
For the cost function C(Q) = 100 + 2Q + 3Q², the total variable cost of producing 2 units of output is Multiple Choice о 16. 10. 4. 12.
a) when the plant is small b) when the plant is medium-size Oc) d) e) at an output level less than q when the plant is large at an output level more than q
Let a firm's production function be f(K, L) = √2K1¹/21/2 a) Solve for the contingent demand functions for K and L. b) Substitute the contingent demand functions in the total cost that you minimized in part a) to obtain the total cost function.
A farm produces rice, which is sold in 50 kilogram bags. Let Q denote the number of bagsproduced per week during harvest time. Costs C are denoted in units of dollars. The totalweekly cost function for producing the product is C = 4Q + 100. The total weekly income function for this product is I = 50Q – 2Q2. What is the profit function P as a function of Q and sketch it using P values 0, 5, 10,15, 20 and 25.
Consider the following multiple output cost function: C(Q1, Q₂) = 100+ 0.5Q₁Q2 + (Q₁)² + (Q₂)² Suppose Q₁ = Q₂ = 10 units. What is 100 in the above equation? a b FC C VC a Are there economies of scope when Q₁ Q₂ = 10 units? = AFC с Yes b No There are cost complementaries.
Find out the maximum possible output for a firm with two units of L and 50 units of k when its production function is Q = 5L + 3K

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If a firm has a Cobb-Douglas production funtion of the form: Q=K0.5L0.5 And K = 1, P = $200, and W = 12.50, then: MPL = VMPL = Optimal L =