2. Suppose a production function is q = K¹/21/3 and in the short run capital (X) is fixed at 100. If the wage is $10 and the rental rate on capital is $20, the short run production function is a.q=10z¹/3 b. g=1002¹/3 C. -1/3 q= 10 d. g=100
Q: 4. Taxes paid for a given income level Antonio is getting ready to do his taxes. He is single and…
A: Marginal Tax Rate: The marginal tax rate is the rate at which an additional dollar of income is…
Q: firm uses land and labor to produce flowers. The isoquant graph to the right illustrates the firm's…
A: The Marginal rate of technical substitution refers to rate at which one input is given up to get one…
Q: Evaluate the following statement. True or False: The most unlikely problem of the national debt is…
A: The government goes for debt to fund its projects and social obligations. The government debt is…
Q: Two firms compete on price every year. The inverse demand function each firm faces depends on which…
A: Game theory in duopoly impacts the strategic interplay between two firms, influencing pricing,…
Q: 1. Give an advantage and a disadvantage of using real GDP per capita (PPP) as a measure of wel-…
A: Measures of welfare in economics refer to metrics used to assess the well-being and standard of…
Q: Give me proper calculation with correct answer Note:- Please avoid using ChatGPT and refrain from…
A: The objective of the question is to calculate the Gross Domestic Product (GDP) of an economy given…
Q: Price (dollars per can) 2.50 2.00 1.50 1.00 0.50 0 O D The graph illustrates the demand curve for…
A: Demand refers to the quantity of goods or services that a consumer is willing and able to buy at a…
Q: Consider the preferences represented by the following indifference curves. These preferences are…
A: The theory of utility is an economic framework for analyzing and determining the satisfaction or…
Q: Please answer [ don't use chatgpt]
A: The objective of the question is to determine whether all Giffen goods are also inferior goods.
Q: 8 6 4 2 O 1 Investment is $ Private saving is $ following questions. PSLF billion. SLF 175 350 525…
A: Loanable funds are defined as the theory for determining the rate of interest in the market. The…
Q: Identify two major economic strengths and two major weaknesses for your selected country (India).…
A: Economic strength shows the robustness of an economy. There are various factors that can contribute…
Q: There is a market for BBQ. There is an increase in the price of chicken. Analyze, describe and…
A: Market equilibrium refers to a scenario at which the quantity demanded is equal to the quantity…
Q: Answer the question based on the following information: Suppose 20 units of product A can be…
A: The inputs such as capital, labor, and land are used to produce, and output in the market are known…
Q: 3. In the theoretical Malthusian model, the law of motion of population is given by Lt+1 = nt Lt.…
A: The Malthusian model is a simple population model where the population at time t+1, L(t+1), is a…
Q: Refer to table 8.1. If the competitive market price for kale is $51, what will the firm do in the…
A: A perfectly competitive firm is a price taker, this implies a competitive firm takes the price…
Q: 1. What are the tools that a country can use to restrict international trade? 2. Explain the…
A: International trade:International trade means buying and selling goods and services from outside the…
Q: [Lecture on indirect utility function] 1. (a) What is the indirect function? What does it show? (b)…
A: The utility function of the individual for the goods shows the preference of the consumer. It can be…
Q: FOOD OUTPUT (units per year) Figure 1.7 KLM CLOTHING OUTPUT (units per year) Refer to Figure 1.7.…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Suppose that banks aim to hold reserves equal to 8 per cent of deposits. Also suppose that desired…
A: ***Since the student has asked for some specific subparts to be solved, the expert is required to…
Q: The data below represent a demand schedule. Product Quantity Price Demanded $6 0 5 1 4 2 3 3 2 4 1 0…
A: This can be defined as a concept that shows the total demand for the products and services in a…
Q: POINSETTIA You purchase five California-grown Poinsettias to decorate your house for the holidays.…
A: The GDP serves as an indicator of a nation's economic performance. It stands for the entire amount…
Q: A consumer's current income (y) is 200 and the future income ( t.') is 240. A current lump sum tax…
A: The current income for the consumer (y) is 200. The future income for the consumer (t') is 240. The…
Q: Price 60 40 20 $20. $40. $25. 2 $60. MR MC Refer to Figure 24-2. If the monopolist is maximizing…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: Suppose a market is described by the following demand and supply curves, respectively: Qd =50−P Qs…
A: The equilibrium refers to economic conditions where the demand and supply forces are equal.
Q: d)What will be the deadweight loss? e) What will be the firm’s maximum profits? f)What will be the…
A: The market for good x for which there is one firm controlling the market.The demand curve is-The…
Q: Using the midpoint formula and the graph below, calculate the following:i. The price elasticity of…
A: Answer is given belowExplanation:
Q: Hand written solutions are strictly prohibited
A: The objective of the question is to solve the cost minimization problem for a firm that produces…
Q: Jody has $360 to spend on her summer vacation. She decided to use the moneyon trips to the zoo and…
A: (i) The original budget constraint equation is X * Price of Movie Ticket + Y * Price of Zoo Trip =…
Q: Consider two consumers, Alex (A) and Nicola (N), who both like good. Alex also likes good y but…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: On the diagram to the right, a movement from A to C represents a OA. decrease in demand. OB.…
A: Demand of a product refers to the consumer willingness to buy a product at a given price…
Q: 1. Quinton's refrigerator has just died. He can get a basic refrigerator or a more efficient and…
A: Present value is the current value of future cash flows or payments. It is the discounted value of…
Q: Consider the following two-period model of dynamically efficient extraction of a non-renewable…
A: The dynamic model of resource extraction helps to determine the optimal (or efficient) amount of…
Q: In economics the circular flow model illisytates what
A: The objective of the question is to understand the concept of the circular flow model in economics.
Q: Which of the following price-quantity data would be part of the demand curve derived from the graph…
A: The issue here includes interpreting a graph to figure out which price-quantity information focuses…
Q: The graph illustrates the unregulated market for uranium. When the mines produce uranium, they also…
A: Marginal Social Costs:-The overall price society pays for the creation of an additional unit or for…
Q: the Fed, and th es loans to Stev k. 2nd National account at 3rd M oply in this econ
A: In the economy, there is a sale of bonds worth $1000 to the Fed. This means the Fed bought the bonds…
Q: Two alternative investments are being considered. Design A has an initial cost of $3 million and…
A: To compare the rate of return of Design B to Design A, we need to calculate the net present value…
Q: Consider the following economy: C-300 + 17/20 X YD T= 4/20 X Y G=1000 M= 2/20 X Y If real GDP is…
A: In macroeconomics, equilibrium level of national income occurs when total planned expenditure of…
Q: Find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $700 per…
A: Interest rate is the cost of borrowing money, generally expressed as a percentage of the principal…
Q: 18. Jake and Gonzalo are roommates and have saved a total of $360 to spend on summer entertainment.…
A: solution is provided in the picture below. i hope you got the crux of it.Explanation:i hope you got…
Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…
A: The objective of this question is to find out the amount that needs to be deposited monthly in an…
Q: a. b. Using the information above, compute the point price elasticity of demand (E): Using the…
A: The price elasticity of demand measures the change in the quantity demanded to the change in the…
Q: The following data represents the output and price of the goods and services produced in the country…
A: Gross domestic product is the final combination of goods and services in a country. GDP is an…
Q: (Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph…
A: Deadweight Loss (DWL): This is the cost to the economy/society when the supply and demand in the…
Q: 1 As more of the nation s systems of river locks 1. As more of the nation’s systems of river locks…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If a price ceiling of $15 is imposed, consumer surplus will be O A. $4,000. O B. $7,000. $0.000
A: A price ceiling is a government-imposed maximum price that can be charged for a particular good or…
Q: ! Required Information The Bureau of Indian Affairs provides various services to American Indians…
A: The objective of the question is to determine which of the two X-ray systems, Del Medical or…
Q: Determine 10% - per-year present worth (PW) of taxes over a 6-year study period. P = $100, S $100, S…
A: The straight-line method is a commonly used depreciation method for allocating the cost of an asset…
Q: Lane French had a bad credit rating and went to a local cash center. He took out a $100 loan payable…
A: To find the percentage of interest paid on the loan, we need to calculate the total interest paid…
Q: 1. Show that for a saving rate s, the law of motion for the capital stock can be written in…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- 2 Suppose that production for good X is characterized by the following production function, O = K0.5L0.5 where Kis the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is: a. $135. b. $2,025. c. There is insufficient information to determine the fixed costs. d. $2,160.= $30 and wage rate Let the production function be given by: q = 10(L^2)K, with rental rate v W = $20. 1. How much K and L are employed to produce 11,250 units of output? 2. Suppose that the firm wants to increase output to 19, 440 units of output, now how much K and Lare employed to produce with minimize cost? 3. Suppose that in the short run the amount of capital is fixed at K = 10, what is the firm short run fixed cost? 4. Suppose that in the short run the amount of capital is fixed at K = 10, what is the short run total cost of producing 900 units of output?2. Suppose a production function is q = K1/21/3 and in the short run capital (K) is fixed at 100. If the wage is $10 an rental rate on capital is $20, the short run production function is a. q = 10L 1/3 1/3 b. q = 100L C. 1 9 = 11/3 d. q 10 = 100
- Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100. If the wage is $10 and therental rate on capital is $20, the fixed cost isa. $2,000b. $200c. $20,000d. $0Q1. Suppose we are given the constant returns-to-scale CES production function q = [k + l]1/ where k represents capital and l represents labora. a. Show that MPk = (q/k)1 and MPl = (q/l)1 . b. Show that RTS = (k/l)1 ; use this to show that elasticity of substitution between labor and capital= 1/(1 – ). c. Determine the output elasticities for k and l; and show that their sum equals 1.Note: Output elasticity measures the response of change in q to a change in any input. Elasticity of output wrt k is eq,k = %q/%k = (q/k)*(k/q) or (q/k)*(k/q) or lnq/lnkSimilarly for elasticity of output wrt l, eq,ld. Prove that q/l = (q/l) and hence that ln(q/l) = ln(q/l)1) For the following functions of production, find the functions of conditional input demand and the cost functions a. q = A min(az,, bz2}; b. q = Azf z; C. q = azı + bz2 d. q = az, + b(lnz2) a, b > 0 A, a, b > 0 A, a, b > 0 a, b > 0 2) For A and D of Point 1, verify Shepard's lemma. 3) For B demonstrate that is possible to retrieve the supply function based on what has been developed so far, in this case, atb<1 www.
- 1/3 1/3 Badgett's Gadgets produces gadgets with the production function, y = x, where x1 is the quantity of labor input, 2 is the quantity of capital input, and y is the 1/3 quantity of output. In the short run, Badgett's capital input is fixed at x=8, and so its short run production function is y = 3(8)¹³ = 2z/³. The per-unit price of labor input is w₁ = 20 and the per-unit price of capital input is w₂ = 40. If Badgett's is a price taker in the output market and can sell as many gadgets as it wishes at a per-unit price of p, what is the lowest value of p at which Badgett's is able to earn positive profits in the short run? Badgett's will earn positive profits for any p > 40. Badgett's will earn positive profits for any p > 80. Badgett's will earn positive profits for any p > 0. Badgett's will earn positive profits for any p > 120.3. Suppose a production function is q = K¹/271/3 and in the short run capital (K) is fixed at 100. If the wage is $10 and the rental rate on capital is $20, the fixed cost is a. $2,000 b. $200 c. $20,000 d. $0A firm produces output according to a production function: Q = F(K,L) = min {4K,8L}. a. How much output is produced when K = 2 and L = 3? 192 Numeric ResponseEdit Unavailable. 192 incorrect.unit(s) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 8 units of output? Capital: 80 Numeric ResponseEdit Unavailable. 80 incorrect. Labor: 480 Numeric ResponseEdit Unavailable. 480 incorrect. c. How does your answer to part b change if the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour? multiple choice Capital and labor increase. It does not change. Capital increases and labor decreases. Incorrect Capital decreases and labor increases.
- 11. Q = 6L - 0.1L2 + 4 K - 0.2 K2 The wage rate is $30, the cost of capital is $40, and output sells for $50. a) In the short run, capital is fixed at 5 units. How much labor do you recommend? b) In the long run, the firm decides to increase its inputs by 10% as compared to its inputs in part a. What do you conclude about returns to scale?A firm's production function is: q = 16L1/2K1/3 where q is the firm's hourly total product, L is the quantity of labor employed, and K is the quantity of capital employed. Assume that the quantity of capital employed is fixed at 125 units per hour. The labor market is perfectly competitive, and the current wage, w, is $10 per hour. The firm sells its product in a perfectly competitive market and the price is $5 per unit. a. What is the firm's value of marginal product of labor? b. What is the firm's profit maximizing quantity of labor?20. Consider the production function Q = 6K/3L/2, where Q, K, and L denote the quantities of output, capital, and labor. Suppose that the price of a unit of output is p= 4, the rental cost of capital is r 0.16, and the wage rate is w = 12. The profit-maximizing values of K and L are (a) K = 250000, L = 1250 (b) K = 1250, L = 250000 (c) K = 25000, L= 12500 (d) K = 2500, L = 125000 (e) K = 125000, L = 2500