Using the information given in the table, draw the isoquant corresponding to anoutput level of 108. Starting from L = 6 and K = 2, how much extra capital isneeded to keep output constant if the labor is reduced from L=6 to L = 3? Howmuch extra capital is needed to keep output constant if labor is increased fromL=3 to L=4?K123456L123456405668808896567688961041086888100108116120809610812012813288104 11612813614096108120132 140144Using the four-point curved line drawing tool, graph the firm's isoquant for anoutput level of 108. Label this 'q = 108.'

For Output Level Q = 108, the isoquantUsing the information in the table, we plot the isoquant for Q…

Answered: Using the information given in the…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 7E

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What is the difference between a fixed input and a variable input?
hand written plzzzzzzzzz......plz solve h part plzz fast plzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Suppose that a rock star gives concerts. The production function of the concert is the following: Q(C,A,G) = (C – 10)'/4A/4G/4 where C represents hourly contribution of guitarist Chris; A represents hourly contribution of guitarist Ataman and G represents hourly contribution of guitarist George. a) If Chris has 26 units of hours, is there increasing returns to scale in production of concerts? b) Assume George has fixed amount of hours, G=16, and hourly wage of G is 5. Denote the wage of Chris= r and the hourly wage of Ataman =w. Derive Rock star's demand for inputs-C and A, respectively-as a function of output (Q). c) Assume that George has fixed amount of hours G=16 and hourly wage of G is 5. Additionally, you are given that the wage of C = r=100 and the unit wage of Ataman=w=100. Show that Rock star's short run cost function is given by TC(Q) = 1000 +50Q²-
Given the following production function: q = 10KL. Assume that w = 25, r = 75 and C = 1200. (a) Mathematically find the minimum cost combination of capital and labour to produce a given level of output.b) Does the production function in part (a) show increasing returns to scale, decreasing returns to scale, or constant returns to scale? Explain. (c) Using isoquants and isocosts, graphically illustrate the effect of an increase in the wage rate, assuming the firm is producing at the same level of output.
(1) q=35L + 40K (2) q=L.5K.5 a) For the production functions of (1) and (2) create the isoquants for q = 100, and for q = 144 with K on the vertical axis and L on the horizontal axis. (Use excel's scatter plot to draw these pictures. So, two pictures with two isoquants each.) b) Suppose that K is fixed at K = 9. Using excel draw the total product curves for equation (1). In a separate excel chart draw the marginal product and average product for K = 9 in equation (1). Give an explanation for the shapes of the total product, marginal product, and average product curve.
The isoquants for inputs that are perfect complements for one another consist of a series of:
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph T PL, APL, and MPt. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (ii) the maximum value of M PL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
Consider the following Cobb-Douglas production function: Y = 10L04K04. Suppose that the price of labor is w = 20 and the price of capital ifr = 40. %3D a- Derive the total cost curve for this production function. b- Derive the marginal cost curve for this production function. c- Plot the marginal and total cost curves for q = 1, 2, 3, 4, 5. What does it tell you about economies of scale for the production function? d- Suppose that the wage rate went up from 20 to 30. What would happen to the total wage bill relative to total costs, wL ? What would happen to total costs? wL+rK
Suppose you run a factory whose short-run production function is given by f (L) = 180L² – 3L³. (a) Find mathematical expressions for the total product of labor, the average product of labor and the marginal product of labor. (b) On two separate axes, graph TPL, APL, and M PL. The diagrams do not need to be scale, but be sure they are internally consistent. In other words, make sure that all relevant relationships between the three lines are correct. If you have trouble figuring out what the graph looks like, feel free to use a graphing calculator or an online graphing tool to find the basic shape. Find the quantity of labor associated with each of the following points and label it on your diagram: (i) the maximum value of TPL, (ii) the maximum value of APL, (iii) the maximum value of MPL. (c) For what values of L does the production function exhibit each of the following: i. increasing marginal labor productivity ii. diminishing marginal labor productivity iii. negative marginal labor…
Suppose that the production function is given as follows:TPL = 10L + 5L2 + L3Find the total product, Marginal product and average product when L = 5.
plz solve h part.....hand written plzzzzz asap plzzzzzzzzz fast plz asap plzzzzzzzzzzzzzzzz
q = 35L + 40 K (1) (2) 0.5, For the production functions of (1) and (2) create the isoquants for q = 100, and for q = 144 with K on the vertical axis and L on the horizontal axis. (Use excel's scatter plot to draw these pictures. So, two pictures with two isoquants each.) Suppose that K is fixed at K = 9. Using excel draw the total product curves for equation (1). In a separate excel chart draw the marginal product and average product for K = 9 in equation (1). Give an explanation for the shapes of the total product, marginal product, and average product curve.

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