Professor Steven and Professor John are going to produce a new introductory textbook. They face the production function for the book as q = S'/2j1/2, where q = the number of pages in the finished book, S = the number of working hours spent by Steven, and J= the number of hours spent working by John. %3D After having spent 900 hours preparing the first draft, time which he valued at $3 per working hour, Steven has to move on to other things and cannot contribute any more to the book. John, whose labor is valued at $12 per working hour, will revise Steven's draft to complete the book. a. How many hours will John have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages? b. What is the marginal cost of the 150th page of the finished book? Of the 300th page? Of the 450th page?

Professor Steven and Professor John are going to produce a new introductory textbook. They face the production function for the book as q = S'/2j1/2, where q = the number of pages in the finished book, S = the number of working hours spent by Steven, and J= the number of hours spent working by John. %3D After having spent 900 hours preparing the first draft, time which he valued at $3 per working hour, Steven has to move on to other things and cannot contribute any more to the book. John, whose labor is valued at $12 per working hour, will revise Steven's draft to complete the book. a. How many hours will John have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages? b. What is the marginal cost of the 150th page of the finished book? Of the 300th page? Of the 450th page?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

6. Which one of the following production functions represents an increasing returns to scale technology, where e is labour and k is capital? a) F(£,k) = e1/2 + k1/2. b) G(2,k) = {2/3k^/2. c) H(e,k) = min{{, 2k} d) I(e, k) = 3l + 2k.
Check the following production functions if they meet (i) out increasing L and K, (ii) diminishing marginal product of K and L, (iii) constant return to scale. Y(K, L) = K^(barAlpha) * L^(1-barAlpha) + barA Y(K,L) = K^4 + L^4
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…
Questions 3. For each of the following production functions, determine whether it exhibits increasing, constant or decreasing returns to scale: a) Q = K + L b) Q = L + L/K c) Q = Min(2K,2L) d) Q = (L.5 )(K.5)
pls solve
Show that the two-input Cobb-Douglas production function (attached) has decreasing return in scale (DRS), constant return of scale (CRS) or increasing return of scale (ITS) depending on if alpha1 + alpha2 is smaller than, equal, or larger than 1.
Assume that you are a manager for Haworth —one of the major manufacturers of office furniture. You recently hired an economist to work with engineering and operations experts to estimate the production function for a particular line of office chairs. The report from these experts indicates that the relevant production function is Q = 2(K) 1/2 (L)1/2 where K represents capital equipment and L is labor. Hanworth has already spent a total of $10,000 on the 4 units of capital equipment it owns. Due to current economic conditions, the company does not have the flexibility needed to acquire additional equipment. The workers at the firm are paid a competitive wage of $100. Also, the chairs can be sold for $200 each. Given the competitive wage of workers which is $100 and the price of chairs, what is your profit-maximizing level of output and labor usage? what is your maximum profit?
Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if both capital and labor rise by 42%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
V1
Given the following aggregate production function: Y = K0.25 (AL) 0.75, where technology A grows at a fixed rate: = g> 0 (a) Obtain the marginal product of capital algebraically, also discussing the second derivative. (b) Transform the production function into efficiency-worker terms, showing how =ỹ depends AL on =k. K AL
9.7 Consider a generalization of the production function in Example 9.3: q = Bo +B1Vkl + B2k+ B31, where 0 < B; <1, i= 0,...,3. a. If this function is to exhibit constant returns to scale, what restrictions should be placed on the parameters Bo» ...,B3? b. Show that, in the constant returns-to-scale case, this function exhibits diminishing marginal productivities and that the marginal productivity functions are homogeneous of degree 0. c. Calculate o in this case. Although o is not in general constant, for what values of the B's does o = 0, 1, or o?
13