Q4The output of a production process, Q, is given by the functionKLQ =K+ 2Lwhere K and L denote capital and labor.(a) Calculate the output when the capital and labor are 40 and 30 units, respectively.(b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used.(c) Transpose this formula to express K in terms of Q and L.Q53The equations defining a simple model of the economy are:C = 0.75Y + 18I = 22where C, Y and I denote consumption, national income and planned investment,respectively.Use this model to complete the following table of values and hence draw an accurategraph of C + I plotted against Y on the interval 0 < Y< 200.100200C + IBy drawing a second line on the diagram, calculate the equilibrium level of national income.Use your graph to explain what happens to the equilibrium level of national incomewhen the marginal propensity to consume decreases with autonomous consumption fixed.

Q4 The output of a production process, Q, is given by the function KL K+ 2L where K and L denote capital and labor. (a) Calculate the output when the capital and labor are 40 and 30 units, respectively. (b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used. (c) Transpose this formula to express K in terms of Q and L. 05

Q4 The output of a production process, Q, is given by the function KL K+ 2L where K and L denote capital and labor. (a) Calculate the output when the capital and labor are 40 and 30 units, respectively. (b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used. (c) Transpose this formula to express K in terms of Q and L. 05

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.6P

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Q1 a) Given a production function depicting the response of paddy rice tofertilizer application,Y = 3X+ 9X2 - X3(i) Calculate the exact MPP and APP.(ii) At what level of fertilizer input(X) does MPP, APP and TPP reachtheir maximum values?(iii) At what level of fertilizer input will r = 0? And what is the valueof TPP at that level?(iv) If the farmer increases the amount of fertilizer in his riceproduction in his area of diminishing returns, explain whether ornot total production will increase or decrease.
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