A firm's production function is given by the4L0.5K0.5. Which of the followingequation Q =is false?%3DThe marginal product of labor is thepartial derivative ƏQ/ƏL.The marginal product of capital is thepartial derivative aQ/aK.JQ/ƏL = 2L-0.5KO.5 =dQ/ƏK = 4L0.5K-0.5 –

In a market, a firm's production function can be used to analyze the contribution of input variables…

Answered: A firm's production function is given…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 39 The folllowing table shows data for a simple production function. Capital (K). Labor (L) 10 0 10 1 10 2 3 4 5 6 10 10 10 10 TP or Q AP MP 6 14 20 14 8 Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL, is $100 per unit. Marginal cost, MC, is at minimum when labor, L, is equal to O2 units. O4 units. O 3 units. 5 units.
A 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.
Please answer in detail according to the picture. Show that the cost function is homogeneous of degree 1/(α+β) in output. How do the returns to scale (degree of homogeneity of the production function) relate to the propertiesof the cost function? Does this make sense to you? Explain clearly why.
Given the following data on input and output levels. Suppose the output price is $5 and input price is $10. Find the values of AVP and MVP when X = 4: X 0 2 4 6 8 10 12 Y 0 100 250 450 600 700 750 $312.50 and $375 $20 and $375 $265.50 and $475 $20 and $750
You are a manager at Glass Incorporated—a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the following table and are based on the 8 units of capital currently available at your plant. Each unit of labor costs RM 60, each unit of capital is RM 20, and your encapsulated windows sell for RM 12 each. Labor L Capital K Output Q Marginal Product of Labor MPL Average Product of Labor APL Average Product of Capital APK Value Marginal Product of Labor VMPL 0 8 0 1 8 10 2 8 30 3 8 60 4 8 80 5 8 90 6 8 95 7 8 95 8 8 90 9 8 80 10 8 60 11 8 30…
pls solve
Q3, A firm operates with the following Cobb-Douglas production function where Q is output, L is labor hours per week, and K is machine hours per week. Cobb-Douglas Production Function: Q = 5(L1/3K2/3) The firm intends to produce 5,000 units of output per week by contracting employees for $40 per hour and renting machinery for $10 per hour. Determine the cost minimizing combination of labor and capital for the firm. Based on your solution in part (a), calculate the firm’s total cost of producing 5,000 units of output per week.
A rainfed wheat farmer has available Rs.200. What will be the slope of iso-outlay line when, price of input A=Rs.1 and price of input B=Rs.2
V1
Could I have help or explanation on how to find the LTC min and L* and k*
A company uses raw materials (M) and energy (E) to produce its product. The marginal product of raw materials MPM = 65 and the marginal product of capital MPg = 40. For each set of per-unit prices of labor and capital given below, determine whether the company is minimizing its total cost. If it is not, determine the direction of factor substitution the firm should make in order to do so. 2.1 P = $11 and Pg = $19 2.2 PM = $28 and Pg = $10

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A firm's production function is given by the 4L0.5K0.5. Which of the following equation Q = is false? The marginal product of labor is the partial derivative aQ/aL. The marginal product of capital is the partial derivative aQ/ƏK. ƏQ/ƏL = 2L-0.5KO.5 = dQ/ƏK = 4L0.5K-0.5 – %D