The Whoville Marble Collective (WMC) makes fancy marbles for picky Whos. WMC's output is given by Q = 20K0.75 0.25, where Q is WMC's annual output (measured in 1000s of marbles), K is their annual capital input and L is their annual labor input. WMC's capital input costs PK = $8000 per unit and their labor input costs p₁ = $25000 per unit. Assuming that WMC's annual production budget is B = $800,000, their maximum annual output is ... 412,891 marbles. 726,085 marbles. 578,634 marbles. O...=857,232 marbles.

The Whoville Marble Collective (WMC) makes fancy marbles for picky Whos. WMC's output is given by Q = 20K0.75 0.25, where Q is WMC's annual output (measured in 1000s of marbles), K is their annual capital input and L is their annual labor input. WMC's capital input costs PK = $8000 per unit and their labor input costs p₁ = $25000 per unit. Assuming that WMC's annual production budget is B = $800,000, their maximum annual output is ... 412,891 marbles. 726,085 marbles. 578,634 marbles. O...=857,232 marbles.

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 your business is currently employing 750 workers, the only variable input, at a wage rate of RM48. The average product of labor is 96, the last worker added 6 units to total output, and total fixed cost is RM12,000. a) What is marginal cost? b) What is average variable cost? c) How much output is being produced? d) What is average total cost? e) Is average variable cost increasing, constant, or decreasing? What about average total cost?
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100? $20 $10 $50 $100
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100?
Please answer in detail according to the picture. Show that the cost function is homogeneous of degree 1/(α+β) in output. How do the returns to scale (degree of homogeneity of the production function) relate to the propertiesof the cost function? Does this make sense to you? Explain clearly why.
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pls solve
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Could you solve d,e,f ? Thank you
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