Suppose that the production function takes the form X = min(10L, 5K) and that a competitive firm faces a wage rate of £60 per week and a weekly capital rental of £32. (a) How much must the firm spend to produce 100 units of output, and what is the average cost of production when X = 100? (b) What is the incremental cost of producing the 101st unit of output? (c) What happens to the cost of producing 100 units of output if the wage rate and the rental cost of capital rise by 25 per cent each? What happens to the average and marginal cost?

Q: Compute the marginal products of each input.   (c)  Does this production function exhibit constant…

A: The marginal product of an input is the additional output produced when one more unit of that input…

Q: ompute the MRTS for this production function: Y (K,L) = 2K+5L

A: MRTS also known as the marginal rate of technical substitution is actually the rate at which…

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Q: 4. 16 where q is the firm's output. (i) Determine the level of output for average costs are minimum.

A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…

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A: Diminishing marginal productivity refers that as we increase the amount of input, the additional…

Q: Both capital and labor are variable inputs. Suppose the wage rate of labor is 16 (per hour) and the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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A: The breakeven point of production is the quantity of output at which the producing firm earns no net…

Q: The J&J company produces a number of products including shampoo, q s and toothpaste q T: Suppose the…

A: Economies of scale means the size of the company and that company's capability to sell its goods and…

Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…

A: Economies of scale refers that when the cost per additional unit is decreasing due to increasing in…

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A: Note: Since more than 3 sub-questions are asked, due to Bartleby policy we are allowed to answer not…

Q: The total cost and the total revenue (in dollars) for the production and sale of x ski jackets are…

A: Revenue refers to the total amount of money earned by a firm from the sale of its goods or services.…

Q: (a) Suppose we have the following production function: Q = K²/³12/3. Does the technology have…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: (a) The revenue from selling q items is R(q) = 50q - q 2 and the total cost is C(q) = 15 + 10q i.…

A: Given: R(q) = 50q - q2C(q) = 15 + 10q   (i) Fixed cost is that component of total cost function that…

Q: (a) Find the number of hours for which each cost function will give the same cost. hours (b) !f the…

A: Fron the provided data, Acme (x); 140+10x Bell (x);200+4x

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Q: at the production function of a chip manufacturer is Q-KL-L'. K-200, then 1,245 -10,000

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Q: Suppose f(x1, x2)= x1 1/3x21/2,w₁=w2=1,for pr ofit maximization, what is the long-run cost function?…

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Q: Farmer Joe’s production function is f(x1, x2) = x 1/3 1 x 1/3 2 , where x1 is the number of pounds…

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A: Returns to scale refer to the change in output that occurs when all inputs (capital, K, and labor,…

Q: ) Suppose we have the following production function: Q=K2/312/3. Does the technology have onstant…

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Q: Night Shades. Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14…

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Q: If the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum…

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Q: Suppose that a rock star gives concerts. The production function of the concert is the following:…

A: Given: The production function of the concert- Q (C, A, G) = (C-10)1/4 A1/4 G1/4 C represents an…

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Q: A) A firm would like to produce 5 units of bread (B) and 4 units of strawberry jam (J) per week…

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Q: What is MC(y) for cost function c(y) = y3? Input prices are taken as constants.

A: Marginal cost measures the change in total cost with an additional unit of production.

Q: 7 A firm has this cost function: C = 4000 - 7Q + 8Q2. The firm is currently producing 5 units of its…

A: Cost Function = C = 4000 - 7Q + 8Q2  where Q = 5

Q: Problem 1. Determine the returns to scale for the following production functions. Give a…

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Q: Here is the production cost function, in $ of producing q units of a product: 2200 C(q) = 300 +0.8q2…

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Q: The Cobb-Douglas production function for a particular product is N(x,y)=80x64, where x is the number…

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