Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total Cost: C=14+2n2+4l2 The price of fish is $2 per unit of fish What is the first order condition with respect to l?

Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total Cost: C=14+2n2+4l2 The price of fish is $2 per unit of fish What is the first order condition with respect to l?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Cost is in dollars and x is the number of units. Find the marginal cost functions MC for the given…

A: 5) Given Total profit function:P(x) = 7x - 24Marginal Profit(MP) = 7The next unit sold earns this…

Q: What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = (b)…

Q: The profit from the supply of a certain commodity is modeled as P(q) = 71ge-0.29 dollars where q is…

A: At some point, the company touches its optimum production level, the point at which manufacturing…

Q: f(x1, 12) = (x1 - 1)0.25x9-5.

A: We are going to use the relationship between upward sloping marginal cost curve and supply curve to…

Q: Define a production function F:R X X 12 F(x, x2 ) = { x₁ + x2 1 2 + if x +x >0 1 2 0 if x +x¸ = 0 1…

A: If these conditions are satisfied, then the solution is a local minimum. If λ>0, these conditions…

Q: Let x denote the level of output of a firm’s production process. The cost function is given by C (x)…

A: Profits are the excess of revenue receipts over the costs incurred by the firm. To maximize profits,…

Q: 3) Suppose a production function is y = x,2 x,1, and w, is the ice of x, and w, is the price of x,…

A: y = x11/2x21/3 y/x1 = MP1 = (1/2)x11/2- 1x21/3 MP1 = (1/2)x1- 1/2x21/3 y/x2 = MP2 =…

Q: A production function is given by f(x1,x2)=(max(x1,x2))^0.5. Prices of inputs are p1=10 and p2=20.…

A: Price of inputs for X1 and X2 are 10 and 20 respectively. Firm want to produce Q=10 units.

Q: A Cobb-Douglas production function for new company is given by ?(?, ?) = ?³/⁵ ?²/⁵ where K…

Q: Given the input-output matrix below, find the output matrix if final demand changes to 400 for…

A: Solution- To solve this problem, we need to use the Leontief Input-Output Model, where the…

Q: If fixed cost decreases to $16,000, does this change the production decision of the airline in the…

A: There are two types of costs, one is fixed and other is variable.Fixed cost does not depend on…

Q: For a producer willing to produce 100 units of output at the minimum cost, what is the optimal…

A: Cost of production is minimized at the level where slope of isoquant is equal to slope of ratio of…

Q: A firm has the production function y=4z₁+10z₂. Input prices are w₁=5 and w₂=6. a) What is the cost…

A: We need to find the ratio of marginal products to the ratio of input prices to determine the optimal…

Q: The cost function of producing Q units of good s.t:

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: 1. If the cost function of producing a commodity is: 40 + 50x + Vx2 +110 C (x) == where x represents…

A: The given cost function is: C(x) = 40 + 50x + VX2 + 110 Assuming V is a constant greater than 0 To…

Q: a) Does the product function provide constant, increasing, or decreasing scale benefits? b) Kjell…

A: x = 100N0.8K0.2 When both inputs are doubled, new production function is x* = 100 x (2N)0.8(2K)0.2 =…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The optimal level of labor and capital is given by the point where the marginal rate of technical…

Q: 1. A firm uses a single input to produce a commodity according to its short-run production function…

A: (a) The firms profit function is (b)The profit maximising amount of input is 16 and the for output…

Q: A manufacturer's production is modelled by the function f(x, y ) = 100x 34 y 14 where x у represents…

A: The objective of the question is to find the maximum production level given the cost constraints for…

Q: (a) The revenue from selling q items is R(q) = 50q - q 2 and the total cost is C(q) = 15 + 10q i.…

A: Given: R(q) = 50q - q2C(q) = 15 + 10q (i) Fixed cost is that component of total cost function that…

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: Does the value of λ change if the budget changes from $4600 to $5600? What condition must a…

A: Lagrange multiplier method is a method in which we can get maxima or minima from an equation by…

Q: 7. Given the Average Coat function: AC = x2 + 2y² - 2y- 6x + 207 – 2x %3D 7.1 Find the quantities of…

A: In a market, an optmial level of output, at which average cost is minimized, is the one at which…

Q: A smartphone repair firm in Boston has a production function for producing phone repairs, q, defined…

A: The production function represents the relationship between the output and inputs. The change in…

Q: A firm's production function is given by Q = 8L?K+ 7L3 Unit capital and labour costs are $1 and $7…

A: the production function is the function that shows the factor of production.

Q: A firm has two plants that produce identical output. The cost functions are : C 1 = 10q – 4q 2 + q 3…

A: The average cost curve shows the per-unit cost of producing a specific quantity of goods or services…

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Cost is the expenditure incurred on inputs to produce given output. Total Cost (TC) consists of…

Q: b) Suppose a business faces a production function which is of the Cobb-Douglas form: Q(L, K) = ALªKB…

A: We have cobb double production function with alpha and beta as parameters.

Q: (v) Find the ratio of the marginal productivities of two inputs, at L =2 and K= 3 when the…

A: Q = 8LK - L2 -K2 MPk= ∆Q / ∆K = 8L - 2K MPl= ∆Q / ∆L = 8K - 2L

Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…

A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…

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 farmer can produce f(x,y) = 208-√4x² + y² units of produce by utilizing x units of labor and y…

A: To calculate the marginal productivity of labor at a specific point, we can take the partial…

Q: Consider the following production function: Q = (1-x-1)yk. Assume we are dealing with the short run,…

A: A production function is a concept used in economics to describe the relationship between inputs…

Q: *Find the elasticity of scale and the elasticity of substitution for the CES production function…

A: Let the production function be: Q = x1ρ+x2ρ1ρ

Q: Considering the Production Function →Y= 95 - 2X,2 + 3X1 + 5X,X2 - 6X22 + 18X2 Find the values of X,…

A: Given information, Production Function: Y=95-2X12+3X1+5X1X2-6X22+18X2 where Y is the output and X1…

Q: (i) The MC of producing a certain good is given by the following function. Determine constants A and…

Q: A manufacturer's production is modelled by the function f(x, y ) = 100x 34 y 14 where x у represents…

A: The objective of the question is to find the maximum production level given the cost constraints for…

Q: X and X2 are the two factors used in production. Afirm's production function: fcx₁, x₂) = max {X₁,…

A: The link between the quantity of producing factors, such as labor and capital used, and the amount…

Q: a= min[x,y]^(1/2) a)Draw isoquants for a = 1, a = 4 and a = 9. b)What kind of returns to scale does…

A: Production refers to the process of using inputs to make useful output. The functional relationship…

Q: Production function: q= 3.2f+0.2fl+1.6l f is the amount of fertilizer l is the hours of labor…

A: We use the formulas: Total Revenue = Price*Quantity Total Profit = Total Revenue - Total Cost

Q: (a) For the cost function C(w₁, W2, y) 2y ww, calculate the Allen elasticity of substitution between…

A: The purpose of this question is to determine if the market is in its long-run equilibrium, consider…

Question

Production Function: q=32n+2nl+16l

n is the size of net

l is the hours of labor employed

Total Cost: C=14+2n²+4l²

The price of fish is $2 per unit of fish

What is the first order condition with respect to l?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose a firm has the following production function Q = f(K,L) = (1/2)L(2/3)K(1/3) and a total cost function TC = wL + rK The rental cost of capital is 2 euros per hour and the labor wage is 4 euros per hour. Suppose also that in the short-run, the firm uses 8 machines in the production process. (a) Show that the firm’s short-run average cost (SRAC) is SRACK=8 = (16/Q)+ 4√? (b) Draw the SRAC curve(c) By solving the first order conditions that the global minimum of production is 4(d) Show that the firm’s long-run average cost (LRAC) is 12. Hint: Start by obtaining the firm’s long-run expansion path(e) Draw both the SRAC and the LRAC and explain why the SRAC is always equal or above the LRAC.
The cost of producing � units of stuffed alligator toys is �(�)=0.004�2+10�+4000. Find the marginal cost at the production level of 1000 units.
A street musician bought a new fiddle for $850.00. Assume she breaks 1 string each hour and can buy new strings for $1.00 each. On average, she makes $18.00 per hour. (a) Find the cost function C(x) associated with playing the fiddle for x hours. C(x)= (b) Find the revenue function R(x) for the amount of revenue gained from x hours of playing R(x) = (c) Find the profit function P(x) for the amount of profit gained from x hours of playing P(x) = (d) Use the functions above to complete the following sentence. She will need to work hours to break even
Craig and Javad run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's longrun production function is Q = 4KL, where Q is the number of reams produced, K is the quantity of capital rented, and L is the quantity of labor hired. The weekly cost function for the paper plant is C = 20K + 4L, where C is the total weekly cost. (a) What ratio of capital to labor minimizes Craig and Javad's total costs? (b) How much capital and labor will Craig and Javad need to rent and hire in order to produce 1,000 reams of paper each week? (c) How much will hiring these inputs cost them?
Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total Cost: C=14+2n2+4l2 The price of fish is $2 per unit of fish What is the maximum profit for the firm?
Juan Valdez owns a coffee farm in Colombia. His production function is: f(x1,x2)=(x1−1)^0.25 x2^0.5 Assume the price of input 1 is r and the price of input 2 is w. (a) Write down an expression for the technical rate of substitution. (b) Find Juan's demand for inputs conditional on the quantity y of coffee Juan wants to produce. (c) Find Juan's cost function. (d) What is the supply function of Juan's firm?
The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost and marginal cost. Find the value of Q whichminimizes average cost? (Show necessary and sufficient conditons)
To produce the next popular toy, a company has to pay a factory $250, 000 to set up the production line. They also have to pay $25 per item for the raw materials and labor. Write function for the average cost to produce x items. Then describe what happens to the average cost as the factory produces a large number of toys.
(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?
The production function for a product is given by q = 100KL. If the price of capital is $120 per day and the price of labor $30 per day, what is the minimum cost of producing 1000 units of output?
A firm’s production is represented by the following function: Q = L1/4 K3/4 . The rental rate of capital (r) is $40 and the wage rate (w) is $12.a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs?b. How much capital and labor should be used to produce 400 units of output? What is the total cost?c. What is the short run total cost if output is decreased to 300 units?d. How would the capital labor choice and total cost change in the long run?e. Would the firm prefer to relocate if input prices are r = 60 and w = 8 at an alternativelocation assuming relocation is costless?
Given the input-output matrix below, find the output matrix if final demand changes to 500 for water, 180 for electric power, and 800 for agriculture. Industry Electric Power Industry: Water Electric Power Agriculture Other Water 200 100 300 400 The output matrix is X= (Round to two decimal places as needed.) 480 120 240 360 Agriculture Final Demand 180 240 120 60 290 140 600