Using the information given in the table, draw the isoquant corresponding to an outputlevel of 135. Starting from L=6 and K= 2, how much extra capital is needed to keepoutput constant if the labor is reduced from L = 6 to L= 3? How much extra capital is8-needed to keep output constant if labor is increased from L=3 to L= 4?7-6-385K270951101201301355-507085100110120100120135150160165120110130110125135145150135145150160165170175175 18043-2-Using the four-point curved line drawing tool, graph the firm's isoquant for an outputlevel of 135. Label this 'q = 135.1-0-Carefully follow the instructions above, and only draw the required object.L, Laborof-00K, Capital

output of 135 can be produced by following combinations of labor and capital:

Answered: Using the information given in the…

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 the production function for widgets is given by q=kl -0.8k²-0.21² where q represents the annual quantity of widgets produced, k represents annual capital input, and I represents annual labor input. Suppose k = 10; at what level of labor input does this average productivity reach maximum? (please put your answer in numerical values with no comma or decimal place). How many widgets are produced at that point? (please put your answer in numerical values with no comma or decimal place). If k = 10, at what level of labor input does MPL = 0? Suppose capital inputs were increased to k = 20, at what level of labor input does this average productivity reach maximum? widgets are produced at that point? (please put your answer in numerical values with no comma or decimal place). If k = 20, at what level of labor input does MPL = 0? answer in numerical values with no comma or decimal place). Does the widget production function exhibit constant, increasing, or decreasing returns to scale?…
uppose a Cobb-Douglas Production function is given by the following:P(L,K)=60L^0.8K^0.2where LL is units of labor, KK is units of capital, and P(L,K) is total units that can be produced with this labor/capital combination. Suppose each unit of labor costs $900 and each unit of capital costs $3,600. Further suppose a total of $900,000 is available to be invested in labor and capital (combined).A) How many units of labor and capital should be "purchased" to maximize production subject to your budgetary constraint?Units of labor, LL = Units of capital, KK = B) What is the maximum number of units of production under the given budgetary conditions? (Round your answer to the nearest whole unit.)Max production = units
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A small clothing manufacturer employs a production method that is approximated by the following production function: q=12KL², where L measures the number of labor hours and K measures the number of rental hours for the machines used in the clothing construction process. Does this production process exhibit increasing, decreasing, or constant returns to scale? Briefly explain your answer. The hourly wage rate for workers at this company is $15; and the rental cost on the machines is $75 per hour. The company has a total budget of $3,150 that it can allocate to cover weekly production costs. The goal of the company's owner is to maximize their output, subject to the constraint of their production budget. Determine the output-maximizing levels of labor and capital the owner will employ.
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