For the production function Q = K0.5L0.1 and the budget 137 = 5K + 2L find the NEW LEVEL in the optimal employment of labor (L) after wages change by a factor of 1.5 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

For the production function Q = K0.5L0.1 and the budget 137 = 5K + 2L find the NEW LEVEL in the optimal employment of labor (L) after wages change by a factor of 1.5 while maintaining the same level of output. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.14P

See similar textbooks

Similar questions

One employee of a computer store is paid a base salary of $4000 a month plus an 8% commission on all sales over $6000 during the month. How much must the employee sell in one month to earn a total of $5000 for the month? Write an equation required to find the solution, using x to represent the amount of sales, in dollars, by the employee. 8 4.000 + x+100 (Use integers or decimals for any numbers in the equation. Do not simplify.)
The output at a certain factory is Q(x, y) = 6x² + 3e*/36 VJ + 3y. where x and y denote, respectively, the number of hours of skilled and unskilled labor used. The current labor force consists of 35 hours of skilled labor and 49 hours of unskilled labor. Find the marginal rate of technical substitution. O Give your answer as a decimal accurate within +1% of the exact answer.
For the production function Q = K0.7L0.6 and the budget 122 = 4K + 4L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the long run after output has change by a factor of 2.0. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).
F (L, K) = L0.2K0.7， The wage rate (price per unit of labour) is w = 2 and the capital rental rate (price per unit of capital) is r = 7. Derive the equation of the isoquant for y = 2 (with K in the vertical axis and L in the horizontal axis). Use the first and second derivative to show that this curve is decreasing and convex. Provide a graphical representation of the isoquant indicating at least one combination of labour and capital in this curve.
Suppose that a furniture manufacturer produces tables. The manufacturer's production function is Q(KL)- 2K0.8 0.2 where Kis the number of wood saws and L is the number of labor hours used to produce tables. The prevailing wage rate is $10 per hour and the rental rate associated with wood saws is $50. The manufacturer has a goal to produce 1,000 units. What Lagrangian equation can be used to solve the manufacturer's cost minimization problem? Oa. C = 2K12 s.t. 1,000 = 50K + 10L b. = Oc L = Od. L = 10K + 50L s. t. 1,000 = 2K08102 50K + 10L s.t. 1,000= 2KL02 2K10 s. t. 1,000= 10K + 50L
A car wash firm calculates that its daily production (in numbers of cars washed) depends on the number of n workers it employs according to the formula P=30n-0.05n^2 cars. (a) Calculate the marginal product of labor at employment level of 50 workers. ___ cars/workers. Interpret the results. This means that, at an employment level of 50 workers, the firm’s daily production will increase at a rate of ____ cars per additional worker it hires.
Suppose the two factors are perfect complements and the production function is given by y=min { 13x1,2x2} Where x1=300, X2=50 What will be level of production and draw corresponding iso quant?
A Firm's Optimization with CES Production Function The Constant Elasticity of Substitution (CES) production function is a flexible way to describe how a firm combines capital and labor to produce output, allowing for different levels of substitutability between the two inputs. The elasticity of substitution, denoted by σ, measures how easily the firm can substitute capital for labor (or vice versa) while maintaining the same output level. The parameter p is related to the elasticity of substitution by the formula σ = 1/(1 - p). Now, let's consider a firm that operates for two periods (t and t + 1) and produces output according to the CES production function: F(Kt, Nt) = [aK{ + (1 − a)N]¹º 0
For the production function Q = K0.7L0.4 and the budget 146 = 7K+ 4L find the change in the optimal employment of L after wages change by a factor of 1.7. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).
Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the annual quantity of widgets produced, K represents annual capital input, and L represents annual labor input. (a). Suppose K=5; what is the average productivity of labor (Average product of Labor, MPL) (b). Suppose K=10; at what level of labor input does the total output reach the maximum?
100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.
Find the rate of change of the function f(x) =x + 2 /1 − 8x with respect to x when x = 1. (ii) The number of units Q of a particular commodity that will be produced with K thousand dollars of capital expenditure is modeled by Q(K)=500 K 2/3