Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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Chapter 17, Problem 17.4P
a)
To determine
To find:No profit condition in
b)
To determine
To know:Price of u-year old tree.
c)
To determine
To know:Value of woodlot.
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A firm's production technology is Y = A * K^0.25 * L^0.75, where the technology level A=8. For such a production function the marginal product of capital is MPK = 0.25 * 8 * K^-0.75 * L^0.75
The firm is stuck with K=81 but is flexible on workers. If the price of the firm's output is P=20 and the cost of a unit of capital is R=8.33, how many workers should the firm have?
Round your answer to the whole worker.
The Answer is 10 I just need help figuring it out
Please find the attached photo.
It’s mathematic for economics, and the questions should solve by the one of these
partial derivatives, Lagrange multipliers, first order differential equations.
Q2. A firm's production function is Q = 9LZ+1)/10KY+1)/10
%3D
• Find out MPL and MPK.
• Find out APL when K=16 L= 64.
Chapter 17 Solutions
Microeconomic Theory
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