Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5 and the Price of L be 2. Then, the equation describing the isoquant for output level 20 is given by: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: LK=10 b: LK=20 c: LK=100 d: LK=200 e: None of the above

Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5 and the Price of L be 2. Then, the equation describing the isoquant for output level 20 is given by: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: LK=10 b: LK=20 c: LK=100 d: LK=200 e: None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Need help on q1
Exercise A.5 A company operates with production function q-K¹/2 [1/2 a) What type of returns to scale does this production function present? As production varies, how would you expect long-term average costs to evolve? b) Assume that the firm's capital equipment is fixed and equal to K = 100 units. Find the firm's short-run production function and the marginal productivity of labour and graph these functions. As production varies, how would you expect marginal costs to evolve in the short term? c) If the prices of capital and labour are r = 8€ and w = 2€ respectively, obtain the expression of the short-run total cost function of the firm. b) Obtain the expressions of the functions of short-term average total costs, average variable costs and marginal costs of this company. Find the production level for which the average total cost is minimized and the corresponding average total cost level. d) Indicate the value of the average total cost, the average variable cost and the marginal cost…
Suppose that a furniture manufacturer produces tables. The manufacturer's production function is Q(KL)- 2K0.8 0.2 where Kis the number of wood saws and L is the number of labor hours used to produce tables. The prevailing wage rate is $10 per hour and the rental rate associated with wood saws is $50. The manufacturer has a goal to produce 1,000 units. What Lagrangian equation can be used to solve the manufacturer's cost minimization problem? Oa. C = 2K12 s.t. 1,000 = 50K + 10L b. = Oc L = Od. L = 10K + 50L s. t. 1,000 = 2K08102 50K + 10L s.t. 1,000= 2KL02 2K10 s. t. 1,000= 10K + 50L
Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5 and the Price of L be 2. Then, the slope of the isocost line is: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: -.4 b: -2.5 c: -5/2 d: 2/5 e: none of the above
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complete the table