A firm estimates its long-run production function to be Q = −0.0075K3L3 + 12K2L2 Suppose the firm employs 12 units of capital. Marginal product when 10 units of labor are employed is a. 12,248 b. 30,672 c. 13,142 d. 14,287 e. 15,984
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A firm estimates its long-run production function to be
Q = −0.0075K3L3 + 12K2L2
Suppose the firm employs 12 units of capital. Marginal product when 10 units of labor are employed is
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- 4) Please indicate whether the following production function has the characteristic of CRS, IRS and DRS. (b) F(K, L)=[aKe +(1-a)L¢ ]ve, (1>a>0, 1>p) 1. CRS 2. IRS 3. DRS 4. None of the aboveA company is currently using its two inputs L and K, where MPL - 3.2K04L 02 and MPK - 1.6K -0.6 0.8 The firm pays a wage (W) of $80 per L and pays a rental rate of capital (R) of $40 per K. unit(s) of K for every The optimal (cost minimizing) combination of labor and capital is to employ unit of L (K should be times L). Answer as a whole number.The short-run production function for a manufacturer of portable power banks is shown at the right. Based on this information, calculate the average product at each quantity of labor. (Your answers should be whole numbers.) Input of Labor (workers per week) 0 Total Output of Portable Power Banks Average Product -0 1 2 3 4 28 5 30 6 30 222233. 10 18 24
- From your knowledge of the relationships among the various production functions, complete the following table: Variable Input L Total Product QQ Average Product APLAPL Marginal Product MPLMPL 0 0 1 10 2 20 3 13.33 4 30 5 16.00 6 80 7 -10A firm engaged in the manufacture of RTWS faces the short-run production function Q = 250L - 5L², where L is the number of units of labor and Q is the number of RTWs produced annually. d.) How many RTWS can be produced by the firm in a year if there are 10 units of labor? e.) Compute the marginal product of the 40th unit of labor. f.) How many RTWs can be produced by the firm in a year if there are 40 units of labor? g.) Sketch the graph of the production function.A carpenter hammers nails each day at work. In each of the first three hours 50 nails were hammered and the marginal product of the fourth and fifth hours of work is 40 and 20 nails, respectively. Diminishing returns will be experienced after the _____ hour. second third fourth first
- When the quantity of a variable input is increased from 3 units to 4 units the total output increases from 70 units to 85 units the marginal product of the variable input is 15 units? True/FalseH13). Importance of Understanding Cost Behavior Patterns Recognizing and understanding cost behavior patterns serve multiple purposes within a company. What are at least 4 of them and explain.Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $268,000 and direct labor hours to be 20,000. Actual overhead for the year was $305,000. 1. Compute the predetermined overhead rate. 2. If the company actually used 23,800 direct labor hours, how much manufacturing overhead is applied to the company's jobs?
- The folllowing table shows data for a simple production function. Capital (K) 10 10 10 10 10 10 10 Labor (L) 3456723 1 TP or Q $500. Zero. O $800. O none of the above. AP MP 6 14 20 14 8 2 Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL. is $100 per unit. Total cost, TC, when labor, L, is zero is equal to1 Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs of production. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph.Assume soybeans are produced by a perfectly competitive, constant-cost industry. Fresh Farm is a typical firm producing soybeans and is currently operating with an economic loss. a. Using a correctly labeled graph for Fresh Farm, show each of the following in the short run. i. The marginal cost curve and average total cost, labeled MC and ATC, respectively ii. Fresh Farm's price and loss-minimizing quantity, labeled PF and QF, respectively iii. The average variable cost curve, labeled AVC b. Suppose that newspapers have recently reported that excessive soybean consumption can cause health problems. As a result, will the new loss-minimizing quantity for Fresh Farm be greater than, less than, or equal to QF in the short run? Explain. c. Is the long-run market supply for soybeans perfectly inelastic, relatively inelastic, unit elastic, relatively elastic, or perfectly elastic? d. Assume now that the soybean market is in a long-run equilibrium and that fertilizers used in soybean…