The short-run production function of a competitive firm is given by f (L) = 6L2/3, where L is the amount of labor it uses. (For those who do not know calculus—if total output is aLb, where a and b are constants, and where L is the amount of some factor of production, then the marginal product of L is given by the formula abLb−1.) The cost per unit of labor is w = 6 and the price per unit of output is p = 3. (a) Plot a few points on the graph of this firm’s production function and sketch the graph of the production function, using blue ink. Use black ink to draw the isoprofit line that passes through the point (0, 12), the isoprofit line that passes through (0, 8), and the isoprofit line that passes through the point (0, 4). What is the slope of each of the isoprofit lines? (b) How many units of labor will the firm hire? (c) Suppose that the wage of labor falls to 4, and the price of output remains at p. On the graph, use red ink to draw the new isoprofit line for the firm that passes through its old choice of input and output. Will the firm increase its output at the new price?

Q: Lesson 7- Production Question 6

A: Answer = The missing value is 5                   The Function is MPL  = 5L-0.5Explanation:Answer =…

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: a) Determine whether the following production functions exhibit increasing, constant, or decreasing…

A: If Q(tF,tK)=ta Q(F,K), then, when a>1, the firm is earning increasing returns to scale when a=1,…

Q: Lesson 7- Production Question 9

A: Labor = 100Explanation:Approach to solving the question and detailed explanation:To calculate the…

Q: A farmer uses a certain technology that produces electricity. His production function is given as: q…

A: Production function shows the relationship between the input used and the output produced.  The…

Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KL) a) Is…

A: This is a long run production function since both the inputs of production labour and capital are…

Q: Consider the following production function: Q = (6L +3K)¹/2 1. What is the Marginal Product of Labor…

A: The production function gives the value of output that can be produced with given inputs and…

Q: Ing fong TC = 8Q³ - 96Q² + 32Q Derive the expressions for marginal cost and average cost. What is…

A: Average cost: ‘average cost’ is the ‘total cost’ divided by the number of units of the good. It…

Q: For the following production function: Y(K,L)= 25(KL)^(1/2) a) Compute the MRTS b) Define if…

A: Since you have provided multiple subparts questions, we will solve the first three subparts for you.…

Q: The economist for the ABC Truck Manufacturing Corporation has calculated a production function for…

A: Production function: Q = 1.3 (L0.75) (K0.3) Where Q is the number of trucks produced per week L is…

Q: Question 2 A firm's short-run production function is given by Q=L(11 + L L²) where L is units of…

A: The average product of labor measures the output produced by each worker on average. The marginal…

Q: Suppose that firms face the following production function: Q = 10 + L+K+2L/2K1/2, This production…

A: please find the answer below.

Q: Question 5 Show that if a production function exhibit constant returns to scale, then the cost…

A: Constant returns to scale means when inputs increases by some percentage then output increases by…

Q: A firm has the following production function: f(x) = ax? – bx³, where x is the only input, a=2 and…

A: The production function is the maximum output that can be produced with the given technology and the…

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: Consider the following short run production function of a textile manufacturing: Q = 6L2 -4L 3 a)…

A: Given: The short-run production function of a textile manufacturing: Q = 6L2 -4L 3 Average product…

Q: Q2: Suppose that a firm's production function of output Q is a function of only two inputs, L and K…

A: As given Q = L + 4K , W = 5 and r = 25 also Given Q =100

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: Provide a graph and an explanation to show that the production function Q = L.5K.5 has diminishing…

A: Meaning of Law of Variable Proportions: The term law of variable proportions refers to the…

Q: When production function  q= 0.2 LK+ 2L2K- 0.05L3K and  K= 10 are given, find amount of labor at the…

A: Given that: Production function:  q= 0.2 LK+ 2L2K- 0.05L3K K= 10 find the amount of labor at the…

Q: In the short term, a firm cannot vary its capital and operates with K = 9.  It can, however, vary…

A: By differentiating the production function with respect to labor, we get the marginal product of…

Q: With a Cobb-Douglas production function of Y= K$L$, What are the marginal product of capital and the…

A: Y = K25L35

Q: A firm has a short run production function: Q = 16L^(1/2) where q = units of output, L = units of…

A: Answer: Given, Production function: Where, Q=units of output and L=units of labor The expression…

Q: A firm uses the inputs of Iron and labor to produce Cars. Suppose that the quantity of labor is…

A: Marginal product is the amount by which production of a commodity changes from employing more unit…

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

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

Q: A study published in Social Science Medicine, “Production Functions for General Hospitals,”…

A: Given  Production function  Q = 5*Staff.34*Beds.64*Drugs.04*Specialits.02 To make simple, let staff…

Q: Does this production function exhibit constant returns to scale? Using the marginal products you…

A: To evaluate if the production function displays consistent returns to scale, we must first see if…

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

A: Production function, Q = 200L + 100K – 0.2L2 – 0.1K2To find the marginal productivity of labor…

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

A: The answer to the questions is as given below :

Q: Q₂ A production function is given by q = 500L + 700K. The price of capital is $120 and the price of…

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

Q: If a firm’s production function is Y = KαL1-α, show that it can earn at most zero profit. Use this…

A: Production function highlights the relationship between the different combinations of inputs used to…

Q: d. In the short-run, Prunella cannot vary the amount of land she uses. Plot the output as a function…

A: Factors of production is used in production process and production function establishes the…

Q: For each of the production functions below, find the marginal products of both inputs, and indicate…

A: A brief introduction to the production function: A production function portrays the functional…

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: Suppose that you are given the following production function: Q=100K0.6L0.4 etermine the marginal…

A:

Q: Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of…

A:

Q: production function is q = f(L, K), where q is output, L is workers, and K is the fixed number of…

A: Average productivity of labour = Output/Labour = q/L Marginal productivity of labour = MPL = dq/dL

Q: Suppose that corns are produced according to the production function q = 100K+ 50L, where q…

A: Production function

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

A: The marginal product of capital is a change in output/total product when additional input (capital)…

Q: In the following production function: f(x1, x2) = Ax1α1 x2α2 , where A, α1, α2 > 0. What is the…

A: Answer to the question is as follows ;