Question 33 Consider a firm with production function f(L,K)=3L+8K. Assume that capital is fixed at K=12. Assume also that the price of capital r=10 and the price of labor w=3. Then, the average cost of producing q units is? AC(q)=24/q+1 AC(q)=114/q+9/8 AC(q)=24/q+3 AC(q)=88/q+1/12 AC(q)=24/q+q

Q: Complete the table below by calculating the variable costs for a firm.  The variable costs of the…

A: Variable costs are the costs incurred by the firm when additional output is produced. Thus the…

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…

Q: machines (K). The quantity of products produced in a month is given by the function Q = 3KL. Each…

A: Q = 3KL Fixed Cost = 15,000 Variable Cost = 5000

Q: Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 22L0.4K0.6…

A: Production FunctionP(L,K) = 22 L0.4 K0.6Cost FunctionC(L,K) = 500L + 200Kwhere,L = units of labor…

Q: The production function of a firm is f: R2 → R, (L, K) H→ 10L + 16K – 2L? – K?, and the per unit…

A: Production function : 10 L  + 16K - 2L2 - K2 Let the cost of capital (K) be (r) & cost of labor…

Q: A salesperson introduces a mobile-data plan to Michael, which allows him to pay HK$200 per month and…

A: In Behavioral economics, willingness to pay is the consumer's maximum ability or willingness to pay…

Q: A firm has the production function q = f(L, K) = L0.5+ K0.5 This firm has: O increasing returns to…

A: The production function exhibits increasing returns to scale if the increase in input by 'm' times…

Q: A firm faces a production function of twittle-twaps: Q(K,Lp,Ln) = 5*K(2/5)*LP (1/3)*LN(1/5) per…

A: The production function is the mathematical relationship between the output produced and the inputs…

Q: Consider the production function Q = (0.5K1/3 + 0.5L1/3)3 with a corresponding MRTS = K2/3/L2/3.  a.…

A: Constant returns to scale occurs when increasing the inputs by some proportion increases the output…

Q: Skylar owns a firm that produces holiday ornaments. Her production function is given by: f (L, K)…

A: Given- y = (min{x1, 2x2})^1/2 let, We increase X1, X₂ by some constant 'C' y' = ( min { CX₁ + 2 CX ₂…

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: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…

A: The law of deminishing marginal returns is one of the key standards of financial matters and is…

Q: Consider a firm with production function F(K, L)=3L+8K. Assume that capital is fixed at K=12. Assume…

A: answer to the question is as follows :

Q: A firm's production function is given by Q=K²L. The wage rate is w=$10 and the rental rate of…

A: Detailed explanation: (1).Given, Production function = Q = K2Lwe need to produce Q = 27,000 units of…

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: A firm has a production function of Q(K,L) = K04L0.6 a) Explain the concept of returns to scale.…

A: The production function reflects the positive relationship between inputs (land and labor) and…

Q: The engineers at Morris Industries obtained the following estimate of the firm’s production function…

A: Firm’s production function is shown below.

Q: 7. What is the average total cost function and the MC function? 100 a. ATC= +60³; MC = 80 b. ATC=…

A: Given; Production function; F(L,K)=L1/4K1/2 Wages; w= 2 Rent; r= 4

Q: Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed at K=1.…

A: Variable cost:Variable costs refer to the costs which changes as the production level of the company…

Q: a firm has the production function Q=min{2L,K}, find the cost function in the long run if wage is $2…

A: The provided production function is: Q=min{2L,K}

Q: For the total cost function TC (a) = - 30q² + 800q, find the minimum marginal and average cost. Show…

A:

Q: Don and Melinda are each allocated 10 apples. Initially, Don's marginal worth for an apple is $0.75,…

A: The right response is (c) both (a) and (b). Don initially values an apple at $0.75, while Melinda…

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: Question 2. A firm has the production function q = L¹/2K¹/2. The firm can purchase labor, L at a…

A: Production function: This production function is in the form of Cobb Douglas production function so…

Q: Consider a market with Qd= 50 - P and Q = 4P What is the consumer surplus in this market? 500 800…

A: SummaryFor the consumer surplus:The answer is 800.For the labor-capital combination:The answer is…

Q: Exercise 21.1 A firm has weekly production function q(k, 1) = k/471/2, and the unit weekly costs for…

A:

Q: c. Given the wage of production workers and the price of twittle-twaps, what is the optimal number…

A: The production function shows the connection between inputs such as land, labor capital, and…

Q: = 2L + K. The wage for a Suppose that a firm has the following production function: q worker is w =…

A: The following problem of minimization of cost is solved as follows:

Q: Suppose a short-run production function is described as Q=30L-0.05L^2 where L is the number of…

A: Suppose, each unit of output has a marginal revenue of $5 and marginal cost of $40, the labours…

Q: Problem 1: A firm has the following production function: f(L, M) = min{L, 3M) where L is the number…

A: Returns to scale is an economic concept that explains how the scale of production or the size of a…

Q: QUESTION 12: Let the production function be as follows Q = K2/3L¹/3 Find the cost-minimizing level…

A: Cost minimization problem of the producer: For the given output level of the firm and per unit cost…

Q: Let us consider the firm producing a single output using two inputs. Suppose that the firm's…

A: Production function: A production function is homogenous of degree one if it satisfies the following…

Q: If a firm has 5 units of capital, 10 units of labor, and the production function is  Q = 4L + 3K…

A: The average product of capital is nothing but the output per unit of capital.

Q: Suppose the production function is q = 18L0.55K0.75. Determine the long-run capital-to-labor ratio…

A: Cost is minimized at a level where slope of marginal products is equal to slope of price ratio of…

Q: For the cost function 125x + 375 C(x) = x+7 where C is in dollars and x is the number produced in…

A: Here we are given the cost function. A cost function is the function of output, and it gives the…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: A firm has the production function X = LK (X = output, L = labour, K = capital); labour and  capital…

A: Production is a critical component of economics as it adds value to the economy by putting labor to…

Q: The equation below is a production function,Q = (200)L + (100)K – (0.2)L2 – (0.1)K2     , where Q is…

A: Q = (200)L + (100)K – (0.2)L2 – (0.1)K2