a. When the production level is at 40,000 units, use the LaGrange process to determine how much they should spend on labor and capital.                                b. If the purchasing agent requests an additional unit (40,001st unit), what is the minimum price you should charge on that specific unit? (Note: determine this without re-solving the Lagrange problem itself.)

A manufacturer's production is modelled by the function f(x, y ) = 100x 34 y 14 where x у represents the units of labour and y represents the units of capital. Each labour unit costs $ 200 and each capital unit costs $ 250. The total expenses for labour and capital must be $ 50, 000. Find the maximum production level.

The firm's production function is given as follows: qx = f(Lx, Kx). qx represents the output produced by the firm, Lx represents the labor input and Kx the capital input. In the long-run, the firm uses both inputs to produce output. An increase in the supply of capital (K) reduces the cost of capital from $6 per unit to $2 per unit. As a result, the firm's demand for the labor input (L) decreases from 200 to 120 units. Based on this information, the cross-price elasticity of labor demand is: O a. 0.50 O b.-0.25 Oc. 0.25 O d.0.75

Q₂ A production function is given by q = 500L + 700K. The price of capital is $120 and the price of labor is $100. If the firm wants to produce 1,400 units of output, how many units of labor should it use? Your Answer: Answer

Solve the exercise with a production function with diminishing returns: In this case, production increases as workers are added, but it increases less and less. a) Calculate the amount of production for each worker and add it to the table, taking into account the production function K 10 1 9. 2 8 3 7 4 6. 4 7 3 8 2 9 10 b) Explain why the production function exhibits diminishing returns to scale.

Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $4.00 in ingredients per pizza, $0.40 in electricity per pizza, $3,000 in restaurant rent per month, and $350 in insurance per month. Assume the pizza parlor produces 4,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $. (Enter your response as an integer.)

Suppose that corns are produced according to the production function q = 100K + 50L, where q represents pounds of corns produced per hour, K is the number of acres of land devoted to corn production, and L represents the number of workers hired each hour. 1. Does this production function exhibit increasing, constant, or decreasing returns to scale? 2. Give one reason why this production function is probably not a very reasonable one.

If the production function is f(x1,x2) = x1,x2.a. Show whether this production function exhibits increasing, decreasing or constant returns to scale.b. Show whether the average cost is increasing, decreasing or constant.

The Cobb-Douglas production function for a particular product is N(x,y) = 40x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. Answer the questions (A) and (B) below. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.

Suppose that the production function for Hannah and Sam's home remodeling business is            Q = F(L,K)            Q = 10L0.1K0.4.Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $1,000 per week.a. What is the least-cost input combination for remodeling 400 square feet each week?      Instructions: Round your answers to 2 decimal places.      units of labor and  units of capital.  b. What is the total cost?         Instructions: Round your answer to 2 decimal places.    $  .revised jrl 08-11-2011