(a)  Find the short-run cost function, SRTC(q) and marginal cost function, MC(q), assuming that k = 27, and letting w and v denote the price of labor and capital. (b)  Find the long-run cost function and the long-run marginal cost function (L and k are both chosen optimally). (c)  Give a formal definition of increasing, decreasing, and constant returns to sale, and determine if the production function above exhibits increasing, decreasing or constant returns to scale. (d)  Derive the firm’s contingent labor demand function

Q: Suppose a Cobb-Douglas Production function is given by the function: P(L, K) = 22L0.4K0.6…

A: Production FunctionP(L,K) = 22 L0.4 K0.6Cost FunctionC(L,K) = 500L + 200Kwhere,L = units of labor…

Q: The total cost function of a firm is given by: C = q(wy{v)! Where q is total output, W and V are…

A:

Q: Consider the following production function: Q=KªLB a) Derive the cost function b) Draw the AC and MC…

A: * ANSWER :- * A)        at eqm, MRTS = w/r                         MRTS = MPL / MPK

Q: Suppose the cost function is given by C(ω, υ, q) = qω^(1/3)υ^(2/3) (a) Use Shepard’s Lemma to find…

A: A)

Q: (5) Consider the Cobb-Douglas production function f(x1, x2) = Axqx½. (a) For what valucs of a and b…

A: ANS When the rise in the amount of output(o/p) is more than the rise in the amount of input (i/p)…

Q: short-run with a fixed amount of at least one input, the Law of Diminishing Returns must apply,…

A: The law of deminishing marginal returns is one of the key standards of financial matters and is…

Q: a) A firm operates according to the following production function: q(K,L)=100 Ks Las The price of…

A: The production function depends on K and L which means capital and labor make up the production or…

Q: 3- Given the total-cost function C(Q) = Q³ – 5Q² + 12Q + 75, Write out the marginal cost function.…

A: Marginal cost indicates the extra cost of producing one additional unit of output. The function for…

Q: Suppose that instead the production function now is F (L, K) = 0.2L + 0.7K. The wage rate (price…

A: Isoquant could be a curve that illustrates all the potential mixtures of 2 parts that make a given…

Q: a) Does the product function provide constant, increasing, or decreasing scale benefits? b) Kjell…

A: x = 100N0.8K0.2 When both inputs are doubled, new production function is x* = 100 x (2N)0.8(2K)0.2 =…

Q: a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate…

A:

Q: (b) What is the firm's marginal cost when it is producing y units of output?

A: a) Conditional Input Demand and Cost Function1. Conditional Input Demand:To find the conditional…

Q: Q.No.6 a. If total cost function is (6) C= C(Q) Show the relationship between marginal cost and…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: i)derive the Total Cost Function, TC(q) ii) draw the Isoquant for the given level of output iii)…

A: Production function : q = 4L + 5K Input prices : w =2   , r = 4 Output level,, r = 4

Q: (2) The general Cobb-Douglas production function for two inputs is given by q = f(k,I) = Ak*7® where…

A: In 1928, Charles Cobb and Paul Douglas claimed that output is determined by the amount of labor and…

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: 1- Consider q =f(k,l) = kl² production function and C = vk + wl cost function. a) Find conditional…

A: Production functionq = k l2This means that the output q is produced by using capital (k) and labor…

Q: (4) w = 3. firm's production function is F(K, L) = 2√/K + L. Factor prices are r = 2 and (a) Find an…

A: The marginal product of labor represents the increase in output as a result of an increase in labor…

Q: a firm has the production function Q=min{2L,K}, find the cost function in the long run if wage is $2…

A: The provided production function is: Q=min{2L,K}

Q: A firm produces output according to the following production function: Q = F (K, L) = 4K + 8L (a)…

A: The physical output of a production process and the physical inputs or elements of production…

Q: In a few words, name the reason that production function q = f(L,K) might have diminishing marginal…

A: Answer in step 2.

Q: Let AC(q) and MC(q) be the average cost function and the marginal cost function respectively. (a)…

A: We know  AC(q)=TC(q)qand MC(q)=dTC(q)dq

Q: A firm's production function is given by Q = 8L?K+ 7L3 Unit capital and labour costs are $1 and $7…

A: the production function is the function that shows the factor of production.

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: 1. 1 Example 1: Let y = F(l, k) = l¾k₹ be the production function, p = 30, w = 10, and r = 5. Find…

A: This problem could be solved by lagrangian function. The lagrangian function is a mixture of…

Q: d) Consider a demand curve given by P = AQ 0.25 where P and Q represent price and quantity demanded…

A:

Q: Consider a firm with production function Q(L, K) = min (2L, K). The wage rate is w = 6, and the…

A: The production function is a function that depicts the relationship between inputs and outputs in…

Q: Given the production function of F(K,L) = sqrtKL If the short run has a fixed K of 5 units, which…

A: Here the production function of F(K,L)=KL the short run fixed capital k=5 units so, F(K,L)=KL=5L…

Q: Suppose the production function is Q = 50 (KL)1/2. (Quantity = 50 times the square root of capital…

A: Q = 50 (KL)1/2 Q = 50 K1/2L1/2 In short run, some input factors are fixed and some are…

Q: Find the marginal cost function. C(x) = 174 + 1.7x The marginal cost function is C'(x) = ||:

A: The total cost function is: Cx=174+1.7x

Q: What is the cost function of f(*1; 2) = min{1, ₂} evaluated at (w1, W2, y) = (5, 10, 2)?

A: Cost function measures the minimum cost of producing a given level of output for some fixed factor…

Q: Suppose the production function is q = 18L0.55K0.75. Determine the long-run capital-to-labor ratio…

A: Cost is minimized at a level where slope of marginal products is equal to slope of price ratio of…

Q: Suppose that the rental rate on Capital equals k^1/2, and the wage rate equals 9. The firms…

A:

Q: 40 30 20 10 12 10 200 100 59 10 O 250 As a production process requires labor L and capital K, q = F…

A:

Q: Assume the following production function: q = √k + √l a) Determine the cost function and the…

A: Cost is minimized when MPL / MPK = w/r MPL = ∂q/∂l = (1/2) / (l1/2) MPK = ∂q/∂k = (1/2) / (k1/2)…

Q: If the production function is F(K. L) = K 1/3 L 2 /3 , the wage rate is 5, and the rental rate of…

A: Given information: F(K,L) = K1/3L2/3 Where F(K, L) is a function of K and L.  K is capital and L is…

Q: A firm is faced with a production technology that uses capital and labor: q = price of labor is w,…

A: The contingent input demand provides the demand for a factor in terms of the output level and cost…

Q: Find the production which has the following cost function (q is output, v= cost of capital,…

A: In economics, a production function describes the relationship between the quantity of physical…

Q: Q) The production function       Q = L1/2K   exhibits: Group of answer choices a) Increasing…

A: Given  Production function  Q= L1/2K       .......... (1) To know the return to scale, we increase…

Q: Give me answer

A: The objective of the question is to determine the conditions under which the given production…