Question 1: ASsume a firm wants to achieve an output level of 5400 units. This is the firm's production for that level of production: 5400 = 25K0.6L0.4 Where Kis capital inputs and Lis labor inputs. Answer a) Yes or no, is this a level curve? b) what is dK, dL

Question 1: ASsume a firm wants to achieve an output level of 5400 units. This is the firm's production for that level of production: 5400 = 25K0.6L0.4 Where Kis capital inputs and Lis labor inputs. Answer a) Yes or no, is this a level curve? b) what is dK, dL

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a firm's production function is given by the following relationship: Q = 2.5√/LK (i.e., Q = 2.5L0.5 K0.5) where is output, L is labor input, and K is capital input. What is the percentage increase in output if labor input is increased by 10%? (Assume that capital input is held constant.) What is the percentage increase in output if capital input is increased by 25%? (Assume that labor input is held constant.) What is the the percentage increase in output if both labor and capital are increased by 10%? 11
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