The daily output at a factory is Q(K, L) = 144KL units, where K is the capital investment measuredin units of $1000 and L is the size of the labor force measured in worker-hours.(a) Compute the daily output if the capital investment is $139,000 and the size of the labor force is 1025worker-hours.(b) What will the output be if both the level of capital investment and the size of the labor force are cut inhalf?

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Answered: The daily output at a factory is Q(K,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A second firm's production function is given by the equation Q = 12L.5K.5. Input prices are $36 per labor unit and $16 per capital unit, and P = $10. a. In the short run, the firm has a fixed amount of capital, K = 9. Create a spreadsheet to model this production setting. Determine the firm's profit - maximizing employment of labor. Use the spreadsheet to probe the solution using your spreadsheet's optimizer.
If the production function is Q = 30 + 22L + 44K, what’s the most you can produce with 9 workers (L) and 2 unit of capital (K)?Enter as a value.
Consider the following production functions• F(L,K) = LK^3 For each for these production functions: (a) Draw the corresponding graph (b) Calculate the marginal product of labor and capital (c) Discuss if each marginal product is diminishing, constant or increasing (d) Calculate the marginal rate of technical substitution (e) Calculate if the function exhibits constant, increasing, or diminishing returns to scale*Just solve d and e
How did you arrive at the new unit productivity percentage of 17.75?
If the production function is Q = 30 + 22L + 30K, what's the most you can produce with 5 workers (L) and 7 unit of capital (K)? Enter as a value.
3(a) A firm's production function is initially Q=VKL. Over time, the production function changes to Q=KL^2 (Assume that L21 and K21). Verify that this change represents technological progress.
For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = 2K + L b) Q = 3L + L/K c) Q = Min(2K,L) d) Q = L*K
The production function is Q = f (L, K0). Explain the total product, the average product and the marginal product, show the curves also graphically
Suppose life expectancy in years (L) is a function of two inputs, health expenditures (H) and nutrition expenditures (N) in hundreds of dollars per year. The production function is L= cH° 40N0.60 Beginning with a health input of $300 per year (H = 3) and a nutrition input of $500 per year (N = 5), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. The change in the marginal product of health expenditures (MPH) is AMPH ΔΗ and the change in the marginal product of nutrition expenditures (MPN) is AMPN ΔΝ
The following equations represent the long-run production functions for four different technologies, where capital and labor are both variable inputs. For each function, indicate whether it exhibits increasing, decreasing, or constant returns to scale. Clearly show your derivations. (Note that in parts a and c, the exponents are decimals.) f(L,K)= 8L²K4 b. f(L,K)= L+7K c. f(L,K)= L³K d. f(L,K)= 4L+K? а. с.
The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is aggregate output? Group of answer choices 600 1000 150 3000

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