a.)Suppose that labor is the only variable input in the production process. If the marginal cost of production is diminishing as more units of output are produced, what can you say about the marginal product of labor? b.)What are economies of scale? What are economies of scope? What is the difference between the two?

Nia's Pizzas is a takeout-only pizza parlor servicing the college campus of Tallahassee that specializes in vegan pizzas. Nia's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Nia signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Nia is unable to change the store's number of pizza ovens in the short run. However, Nia does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Nia contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following table presents Nia's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Output Marginal Product of Labor (Pizzas) Labor…

The quantity, Q, of a certain product manufactured depends on the quantity of labor, L, and of capital, K, used according to the function 0 = 900LK¹³. Labor costs $100 per unit and capital costs $50 per unit. What combination of labor and capital should be used to produce 36,000 units of the goods at minimum cost? What is that minimum cost? Round your answers to two decimal places.

Problem 3.  Maria Bakery sells cupcakes.  The production of cupcakes takes both raw ingredients, and l is hours of labor.  The daily production function for cupcakes is given by   q = ½ * g * l + l^2 - 20   where output is in dozens of cupcakes, g is poinds of raw ingredients, and l is hours of labor.  The cost of a pound of raw ingredients is pg = $1 while the cost of an hour of labor is pl = $12.  What is the optimal ‘number’ of pounds of raw ingredients to use per hour of labor? (Hint: Consider the marginal productivity of investment of the inputs.) A standard day requires about 25 dozen cupcakes to be make.  What is the cost minimizing production plan for 25 dozen cupcakes? (Hint:  Find the cost minimizing l and g such that dq = 25.) How much will this cost?

Grease Tech produces oil changes. The production of oil changes reles on both capital (K) and labor (L) and is combined in the following production function F (K, L) = KILL Take the derivative of this production function with respect to capital. What is the marginal product of capital evaluated at (le. just plug in the numbers) 64 units of capital used and 16 units of labor?

Economics: Industrial Economics Question: 1 A firm produces output according to the following production function: q = 10 K^1/4 L^1/4 The price of capital is r = 9 and the price of labor is w = 25 and there is a set-up cost F = 90 that the firm only pays if it decides to produce in the market. If the firm wants to produce 'q' units of output, solve the cost minimization problem. Obtain total cost C* (as a function of output level q). Now assume that the firm operates under monopoly and the inverse demand function is p = 115 - 2 q Use the solution to the cost minimization problem to solve the profit maximization problem of this firm. Determine this firm's price p*. Please Show your Work. a. 55 b. 75 c. 85 d. 65   Question: 2 A firm produces output according to the following production function: q = 10 K^1/4 L^1/4 The price of capital is r = 9 and the price of labor is w = 25 and there is a set-up cost F = 90 that the firm only pays if it decides to produce in the market. If the firm…

University level intermediate microeconomics, theory of production

answer question d Q5. Jason is running a cleaning business, there are available labours (L) and machines (M) for Jason to use as inputs to produce cleaning service for his clients. a) Suppose Jason must use both labours and machines without any specific ratio to complete the service for his clients, please write down the general production function formula for Jason. hint: you could use any letter if you want] b) Under the function form of a), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) equals to 2, how do you interpret it? c) Assume Jason now can use only single input, either labour or machine to complete the service, please write down the general production function formula for Jason. hint: you could use any letter if you want] d) Under the function form of c), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) is always larger than the market price ratio between labour and machine (w/r), what should Jason do? why?

which of the following best describes marginal product?A.)Left over output- the loaves a bakery makes but does not sell that goes unused. B.) The total number of loaves a bakery can create with 5 workers and a fixed amount of capital. C.) The loaves made by a bakery using a substandard quality flour that ultimately harms business profits. D.) When the number of bakery staff increases from 2 to 3 bakers, 5 additional loaves are made.

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