A company's production process is modeled by the production function Y(L, K)= LK. The wage rate is w=9 and the cost of capital is r=5. What is the amount of labour, L, that minimizes the cost C(L, K) = wL+rK such that the total level of production be Y(K, L) = 139? a. 12.65 b. None of the other choices is correct. c.. 103.60 d. 8.79

Suppose the short-run production function is q = 5L0.5. If the marginal cost of producing the 5th unit is $13, what is the wage per unit of labor? Your Answer:

A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/² L¹/4 The amount of capital used for production is determined at the beginning of the year. The prices of K and L are v and w respectively.

A firm uses labor (L) and capital (K) to produce output (q) according to the function: q= L ².K In the short-run, the firm's level of capital is fixed at one unit (K 1). Assume the firm has already paid a fixed cost of $1 (F = 1) for their one unit of capital. In addition, assume that each unit of labor must be paid a wage of $1 (w = 1). If the firm can sell each unit of output at a price of $6 ( p = 6), answer the following two questions: A) What is the firm's profit maximizing level of output in the short-run? Profit maximizing q 3 = B) What is the maximum profit the firm can earn in the short-run? Maximum profit 8 = dollars

Suppose w= 1 and r= 3. Solve the cost minimization problem to find L*(q) and K*(q). Then find the cost function C(q).

Given the total cost equation: level of Q yields the minimum cost of production? TC = 32 + 2Q², what level of total average

Suppose the production function is given by f(K,L) = 3Kl, where K denotes capital and L denotes labor. The price of capital is 2 TL/machine-hr, the price of labor is 24 TL/person-hr, and capital is fixed at 4 machine-hr in the short run. a) Find the short-run TC, TVC, and TFC curves for this production process. Sketch them on a single graph. Do not forget to label all axes and necessary points on your graph. b) Find short-run ATC, AVC, AFC, and MC curves for this production process. Sketch them on a single figure. Do not forget to label all axes and necessary points on your graph.

Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function             Q=F(L,K)             Q=10L^0.5K^0.5,where L is their number of workers and K is units of capital. The wage rate is $250 per week and a unit of capital costs $250 per week. Suppose that when initially producing 100 square feet a week, they use 10 units of capital.a. What is their short-run cost of remodeling 1,000 square feet per week?    Instructions: Enter your answer as a whole number.    $ b. What is their long-run cost of remodeling 1,000 square feet per week?    Instructions: Enter your answer as a whole number.    $

A factory that you are managing has an hourly production process that can be represented by the following Cobb Douglas Production function: Q=10KL. The price of one unit of capital per hour is $20 and the price of one unit of labour per hour is $20. You have been instructed to produce 100 units per hour or Q-100. Find the optimal amount of labour and capital that you will be using, and compute the total cost.

A firm’s only variable factor is labour and it produces a single product, X. It also has fixed costs. The short-run production function is; X=-0.1L3 + 6L2 + 12L. Where X is the output in tons, and L is the number of persons employed. How many persons are employed if the average physical product of labour is maximized? How many persons are employed if the marginal physical product of labour is maximized? What is the quantity of X when average variable cost is minimized? If the weekly wage is $360 and the price of X is $30 per ton, how much X should be produced to maximize profits?