ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Find out the maximum possible output for a firm with two units of L and 50 units of k when its production function is Q = 5L + 3K
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- Suppose a firm with a production function given by Q = K0.4L0.6 produces 100 units of output. The firm pays a wage of $20 per units and pays a rental rate of capital of $40 per unit. (Note: MPL = 0.6K0.4L-0.4 and MPK = 0.4K-0.6L0.6 ) What is the minimum cost of producing 100 units of output?arrow_forwardFirm D has production function F(K,L) = aK+2L. Very briefly, what is the interpretation of a in this function?arrow_forwardA firm produces plastic bins using labor (measured in man-hours) and capital (measured in machine-hours), according to the production function Q = f(L,K) = LK, where Q is the number of plastic bins produced. Suppose that the cost of labor is $20 per worker-hour and the cost of capital is $10 per machine-hour. What is the cost minimizing input combination if the firm wants to produce 28,800 plastic bins? Hint: The marginal products are MP, = K and MPg = L.arrow_forward
- a) when the plant is small b) when the plant is medium-size Oc) d) e) at an output level less than q when the plant is large at an output level more than qarrow_forwardA firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Find its returns to scale when X1=1, and X2=1arrow_forwardA firm's production function is given by Q = 20L0.8 K0.2. At that moment, the firm sets = 1,000 and K = 1,000. Which of the following combinations of L and Klies on the same isoquant? L = 1,063.9; K = 698.7 L= 1,063.9; K = 698.7 L=698.7; K = 1,063.9 L = 1,302.3; K = 936.1 L 936.1; K 1,302.3arrow_forward
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