Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels. Q = 1 Tech. K L A B Q=2 Q = 3 KLK L 4 1 6 2 9 13 2 5 4 Total Cost 4 8 Q = 4 K L Q = 5 KL 12 7 11 8 5 12 7 15 Assuming that the price of labor (PL) is $1 and the price of capital (PK) is $3, calculate the total cost of production for each of the five levels of output using the optimal (least-cost) technology at each level. To do this, complete the table below by calculating the total cost of production, filling in the missing values using the optimal (least-cost) technology at each level. (Enter your responses as whole numbers.) Q=1 Q=2 Q=3 Q=4 Q=5 S S $

Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels. Q = 1 Tech. K L A B Q=2 Q = 3 KLK L 4 1 6 2 9 13 2 5 4 Total Cost 4 8 Q = 4 K L Q = 5 KL 12 7 11 8 5 12 7 15 Assuming that the price of labor (PL) is $1 and the price of capital (PK) is $3, calculate the total cost of production for each of the five levels of output using the optimal (least-cost) technology at each level. To do this, complete the table below by calculating the total cost of production, filling in the missing values using the optimal (least-cost) technology at each level. (Enter your responses as whole numbers.) Q=1 Q=2 Q=3 Q=4 Q=5 S S $

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.4P

See similar textbooks

Similar questions

What is the difference between a fixed input and a variable input?
Don't answer by pen paper and don't use chatgpt otherwise we will give dounvote
please show graphs and table thank you
Digging calms by hand in Sunset Bay requires only labor input. The total number of calms obtained per hour (q) is given by :Q = 100√LWhere L is labor input per hour. A. Graph the relationship between q an LB. What the average productivity of labor in Sunset Bay? Graph this relationship and show that output per unit of labor input diminishes for increase in labor input. C. It can be shown that the marginal productivity of labor in Sunset By is given by:MPL =50√LGraph this relationship and show that labor’s marginal productivity is less than average productivity for all values of L . Explain why this is do.D. Explain the concept of diminishing returns to labor and how this concept related to increasing marginal costs.
part D E F urgently needed
The Acme Anvil Company's output is given by the Cobb-Douglas Production function P = 60L2/3 K1/3, where P is the number of anvils produced when Lis the amount spent on labor and K is the amount spent on capital. a. What is the production if L = 150 and K = 150? b. Find the marginal productivities. C. Evaluate the marginal productivities with L = 150 and K = 150. d. Interpret the meanings of the marginal productivities found in part c. e. If their budget is $300 then there is a constraint L+ K = 300. Use Lagrange multipliers (2) to find the values of L and K that will maximize production and find the maximum production f. Find 2. 12| is called the marginal productivity of money and will give the number additional units produced for each dollar increase in the budget. Interpret 2 for this problem. MacBook Pro urses/34419/files/5014304?wrap=1
2. The Acme Anvil Company's output is given by the Cobb-Douglas Production function P = 60L2/3K1/3, where P is the number of anvils produced when L is the amount spent on labor and K is the amount spent on capital. a. What is the production if L = 150 and K = 150? b. Find the marginal productivities. c. Evaluate the marginal productivities with L = 150 and K = 150. d. Interpret the meanings of the marginal productivities found in part c. e. If their budget is $300 then there is a constraint L+ K = 300. Use Lagrange multipliers (2) to find the values of L and K that will maximize production and find the maximum production f. Find 2. 12| is called the marginal productivity of money and will give the number additional units produced for each dollar increase in the budget. Interpret 2 for this problem. Only need paVAS e and fl
part D E F
II. Helping Conchita-Crem to minimize costs Suppose that the labor cost of Conchita-crem is $20 USD per hour, and the cost of capital is $5 USD per hour. Suppose the production function for conchas is q = 10L/2K2 a) José Antonio produces 1000 conchas. He is currently using 100 workers and 100 ovens. Is he optimizing his use of inputs of production? b) What is the rule to optimize the use of inputs of production? c) Find the optimal level of labor and capital for Conchita-Crem. What is its total cost? d) Now suppose that the rental price of ovens for Conchita-Crem increases 100%. Would the production change? What would be now the rule to efficiently use inputs of production? How much labor and capital be used? What is the total cost now? Compare it to your answer in c. e) Find the input demand functions for capital and labor. Remember these functions specify the amount of labor or capital that Conchita-Crem will use as a function of production level q. f) Suppose now that José Antonio…
If capital and labour are perfect complements then the marginal products of capital and labour are undefined A True Faise Question 16 A firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product of labour must be 0.25 True B False Question 17 Afirm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 05. If there are constant returns to scale the marginal product of labout must be 0.25 A True False
Problem 5 The production function of COVID vaccines for firm O is given by v° = VKL. and requires at least one unit of labor L and one unit of capital K, i.e. L>1 und K > 1. a) After a year and some thorough research, the production function changes to VO = V4KL. (I) Compute the marginal products with respect to labor L and capital K for both production functions ! (II) Which company's the marginal products is/are larger ? What happened to the original level of production after a year ? (III) Do the production functions exhibit increasing, constant or decreasing returns to scale ? b) Suppose now, we compare production functions of company O that discovered the vaccine to a second company M. The production function of M is given by VM = K0.6 L0.4 (I) Compute the marginal products with respect to labor L and capital K for this pro- duction function ! (II) If both companies used the same equal amount of labor L and capital K, which of them will generate more output ? (III) If the…
Please no written by hand solution