An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the Marginal Rate of Technical Substitution (MRTS) at a point (L, K)=(2,9)? Capital 1, 14 15 14 13 12 11 10 9 2,9 8 7 6 3,5 5 4 3 2 52 6,1.5 1 0 0 1 2 3 4 5 6 7 Labor

An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the Marginal Rate of Technical Substitution (MRTS) at a point (L, K)=(2,9)? Capital 1, 14 15 14 13 12 11 10 9 2,9 8 7 6 3,5 5 4 3 2 52 6,1.5 1 0 0 1 2 3 4 5 6 7 Labor

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Question 5 A manager hires labour and rents capital equipment in a very competitive market.…

A: The optimal amount of labor and capital is such where MPL / MPK = w / rWhere, MPL = Marginal product…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve. If a=b=0.5 , the price of factor 1…

A: y= f(x1,x2)=x1ax2b a=b=0.5 the price of factor 1 is 12, the price of factor 2 is 3

Q: A craft brewery hires 2 0 0 daily workers ( L ) at a wage ( w ) of $ 3 2 , and has 1 0 0 units of…

A: A production function:A production function is a function that establishes the relationship between…

Q: The production function of a firm is f: R2 → R, (L, K) H→ 10L + 16K – 2L? – K?, and the per unit…

A: Production function : 10 L + 16K - 2L2 - K2 Let the cost of capital (K) be (r) & cost of labor…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve. If a=b=0.5 , the price of factor 1…

A: Since y = x1a.x2b, We get x2b = y / (x1a) So, x2 = [y / (x1a)](1/b) [Equation for isoquant]

Q: For the production functions of (1) and (2) create the isoquants for q = 100, and for q = 144 with K…

A: Isoquant curve represents the influence of all inputs on the level of output.

Q: Suppose that a firm has a production function given by f(21, 22, 23) Arizz If a 2.10, b= 1.10, and…

A: Marginal product is calculated by differentiating total product with respect to change in variable…

Q: The production function is given by F(L) = 622/3. Suppose that the cost per unit of labor is $8 and…

A: A mathematical equation that describes the relationship between inputs (such as labor, capital, and…

Q: Question 8 of 13 The following diagram depicts the production function of the farmers, where…

A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…

Q: A firm's production function is q = 2K0.5 +5L 0.5 This production function exhibits decreasing Both…

A: The production function in economics is a task that relates the output a firm can produce to…

Q: Suppose the production function is Cobb-Douglas and f(x1;x2)=x11/2x23/2 Write an…

A: The Cobb-Douglas production function is a mathematical equation that represents the relationship…

Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The optimal level of labor and capital is given by the point where the marginal rate of technical…

Q: An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the Marginal Rate of…

A: The objective of the question is to calculate the Marginal Rate of Technical Substitution (MRTS) at…

Q: (b) F(K, L)=[aKe +(1-a)Le ]p, (1>a>0, 1>p) 1. CRS 2. IRS 3. DRS 4. None of the above

A: The production function shows the technical relationship between input factors and final output. The…

Q: Firm "Happy Capitalist" has following production function: f(K, L) = 2*k0.2L0.8. Furthermore, it is…

A: Production function is given byCapitalist wants to maintain output level of 250. Hence rewrite the…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve. If a=b=0.5 , the price of factor 1…

A: y = x1ax2b x2b = y / (x1a) x2 = [y / (x1a)](1/b)

Q: Complete the following table, which shows the amount of ore produced (measured in tons) when various…

A: Total product is the total amount manufactured per a set of resources, average product is the…

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: FarFlung make computer keyboards. They use both labour, L, and materials, M, in their production of…

A: Q = LM Q = 160,000 MPL = dQ/dL = M MPM = dQ/dM = L

Q: Suppose the production function for a firm is given by: q=4L0.5K0.25, If the firm currently has 20…

A: The production function describes the correlation between inputs and outputs(q) in the production…

Q: An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the Marginal Rate of…

A: The objective of the question is to calculate the Marginal Rate of Technical Substitution (MRTS) at…

Q: 7. Given the Average Coat function: AC = x2 + 2y² - 2y- 6x + 207 – 2x %3D 7.1 Find the quantities of…

A: In a market, an optmial level of output, at which average cost is minimized, is the one at which…

Q: (e) Let P = $600. Find optimal output where r = $200 and w= $300. You can do this in a table or…

A: Break even price is that price level where total profits = 0 => Total Revenue - Total Cost = 0…

Q: Consider the input output table below Table (Inter) final Total (Agric) (Manuf) (Mining)demand…

A: Given information

Q: A firm faces the production function: q=10L^0.32 K^0.56 (a) What kind of returns to scale does…

Q: The production function is f (L, M) = 5L1/2M1/2, where L is the number of units of labor and M is…

A: MRTS is amount of one input that needs to reduced ,so that one more unit of other input can be used…

Q: For a production function that exhibits diminishing marginal product:  From Lourdes N to Everyone:…

A: The study and analysis of commercial barriers impacting businesses using abstract economic concepts…

Q: (a) Suppose we have the following production function: Q= Suppose K is fixed in the short- run at…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…

Q: Labor Marginal product 0 0 1 8 2 10 3 12 4 9 5 5 22) Diminishing returns to labor…

A: For the first question (22), the diminishing returns to labor, begin at labor unit 4. This is…

Q: The cost function of a firm is given by C (x) = 2x² + 3x + 5. Then the average cost producing 5…

A: The total cost of production: It is the function of output. As the output increases the total cost…

Q: unction for Soybeans Quantity of labor (workers) Quantity of soybeans (bushels) 1 25 45 3 60 4 70 75…

A: Here we calculate the total cost of 70 bushels by using the given information and choose the correct…

Q: Two points, A and B, are on an isoquant drawn with labor on the horizontal axis and capital on the…

A: The capital-labor ratio at B is twice that at A, it implies that the percent change in this ratio as…

Q: (v) To minimise cost, Woodmaster would choose K = 4 x and L=-1 x (vi) Minimum cost to produce Q=0.5…

A: The value of Labour at Quantity after the downturn has been calculated wrongly. Therefore, the cost…

Q: Output Marginal Labor (Q) Product 15 1 50 15 5 4 70 5 60 In the table above, when the firm produces…

A: The labor market of the economy determines the equilibrium wage rate and the quantity of labor…

Q: Consider the following equation Q = f(K, L) = K0.7 L0.3 Find (a) MRTS of labor for capital (b)…

A: Production function refers to a mathematical equation or relation that shows the relationship…

Q: A firm has the following production function where q represents the output level per week, L…

Q: The estimated production function is Q = 12K ½ L1/4 The firm pays workers (L) and rents boats (K) in…

A: Q = 12K1/2L1/4 -------> Production function. Where Q is the quantity of fish. K is boats rented…

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve. If a=b=0.5 , the price of factor 1…

A: The iso-quant curve is the curve that shows various combinations of two inputs that give the same…

Q: 1.) A firm engaged in the manufacture of RTWS faces the short-run production function Q = 250L -…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: A firm can manufacture a product according to the production function Q = F(K, L) = K0.>L0.5. (a)…

A: Q = F(K,L) = K0.5L0.5 K¯ = 36 L ¯ = 16

Q: Maize is produced according t8 lme q = 100(K° L°) %3D Starting with a capital input of 4 and a labor…

A: a production function gives the technological relation between quantities of physical inputs and…

Q: From 1 labor hour up to 7 labor hours, what sort of marginal productivity does this production…

A: The marginal productivity of labor describes the additional output (or production) that a firm…

Q: Consider the production function Q = 10KL. Will the MRTS for this production function remain…

A: Here, Q = 10KL And, MRTS which is marginal rate of technical substitution is defined as the the…

Question

An isoquant curve for producing a 10 lb bag of wheat is given as below. What is the
Marginal Rate of Technical Substitution (MRTS) at a point (L, K)=(2,9)?
Capital
1, 14
$15
14
13
12
11
DRBT6543210
9
8
7
-4
-3
4
3
2,9
3,5
43
52
6,1.5
1
2
3
4
5
6
7
Labor

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define isoquant

VIEW

Step 2: Choose the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Graph the isoquant below and explain Labor (x) 50 38 28 20 14 10 8 7 Capital (y) 3 6 9 12 15 18 21 24
Determine the multifactor productivity for the combined input of the labor and the machine time using the following input : labor :3000$,material :800$, .overhead: 20o0$ . keep in mind the production is 1760 unit
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100? $20 $10 $50 $100
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL = $1 and PK = $1. What is the smallest total cost necessary to produce Q = 100?
When Marginal Product of Labor intersects the Average product of labor, minimum average product of labor obtains at the intersection. True False
Suppose that the production function for Hannah and Sam's home remodeling business is Q=f(L,K) Q=1040.2K0.3 Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $2,000 per week. a. What is the least-cost input combination for remodeling 100 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.
Suppose a firm's production function is Q=200L +5L2-0.08L³. Which of the following is the Average Production of Labor (APL)? Oa. 200+10L-0.24L² Ob. 10L-0.24L² Oc. 5L-0.08L² Od. 200+5L-0.08L²
Provethatthetechnologyf(L,K)=L2+K2 exhibitsincreasingreturnstoscale. What is the formula for the average product of capital? For the total cost curve TC(q) = q3, prove the technology exhibits decreasing returns to scale
Fill in the space (d) in the table below associated with the firm William Perry, Inc., that delivers refrigerators in the Chicago area, using the two inputs of labor and trucks. Number of Amount of Trucks Labor 2 2 2 2 2 2 2 0 1 2 3456 Total Output 0 75 (c) 380 (f) Average Product of Labor (a) (b) 100 (d) (e) 75 Marginal Product of Labor 100 50 (g) 0
Assume there is a linear isoquant where the input combination K = 10, L = 0 produces Q = 100. Assume that this isoquant has a MRTS (marginal rate of technical substitution) such that an increase in L by 1 unit requires the firm to give up – ½ unit of K. Assume PL= $1 and PK = $1.What is the smallest total cost necessary to produce Q = 100?
In the short run, a firm which has production function f(L, M) = 4L1/2M1/2 must use 4 machines. If the cost of labor is £4 per unit and the cost of machines is £4 per unit, what is the short-run total cost of producing 48 units of output? Use Lagrange
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 5 workers the firm produces 85 units of output. Fixed costs of production are $5 and the variable cost per unit of labor is $10. The marginal product of the sixth unit of labor is 4. Given this information, when the firm hires 6 workers the total output is amount to $ variable costs are $ production (rounded to the nearest cent) is cents. units, the fixed costs and the average total cost of