Miranda is stranded on a desert island, and having quite the enterprising spirit, notices that the oceans are teeming with fish and immediately seizes upon this lucrative opportunity. She is endowed with a single fishing net, but is unable to make any more, so that her capital stock remains fixed at = 1. Hence the number of fish q she catches depends only on the hours of labor that she employs, by the production function q = f(k, l)=√√kl= √t Let the rental rate of capital be v = 0, the wage rate be normalized to w = 1, and let p denote the price of fish. a) Find Miranda's cost function c(q). (b) Write Miranda's profit maximization problem and state the first order condition. (c) Find Miranda's output supply qS(p), labor demand lc(p), and profit π(p) as functions of the price of fish.

Kwami and Adzga quit their jobs and decided to start a piggery joint venture business. The company processes and packs pork for sale. The output from this firm is described by the Cobb-Douglas production function, q=K¹/² A¹/2 Where q is the number of pigs processed in a quarter, K is the number of hours invested by Kwami in a quarter, and A is the number of hours invested by Adzoa in a quarter. Kwami and Adzoa value 1 hour of their time at $12 and $3 respectively based on what each was earning before quitting their jobs. a) Obtain the number of hours that Adzoa needs to invest (as a function of q and K) for 150 pigs to be processed in a quarter b) How many hours should Adzoa invest for 150 pigs to be processed in a quarter if it is known that Kwami invested 750 hours? c) The cost function for this company may be written as, C= vK + WA where v and w are unit costs for Kwami and Adzoa. wwwwwwww www Substituting for v and w gives C= 12K + 3A Express this cost of production function as a…

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…

Let us consider the cost implications of the short-run production schedule from assignment number 7, where capital was fixed at 2 units of capital. Labor:  0 1 2 3 4 5 6 7 8 9 Output:  0 6 24 60 120 170 210 240 260 270 In this scenario, since we only have two inputs (Capital and Labor), and since the amount of capital is fixed, the cost of total cost capital would also be Total Fixed Cost (TFC) and since labor is variable, the total cost of labor would be Total Variable Cost (TVC). In that context, assume that the cost of capital is $40 per unit per period, while the cost of labor (or wage rate) is also $30 per unit of labor per period. (a) Use this information set up a diagram (using excel) that shows total cost (TC) and total variable cost (TVC) of the firm per period in the short run with the level of output on the horizontal axi