The production function of a firm is estimated to be Q=f(K,L)= KL + L. Market conditions require that the firm produce 200 units of output. Wage rate (w) is equal to 2 TL, while the price of capital (r) is equal to 1 TL. a) How much labour (L) and capital (K) should be used by the firm? b) Assume that the market conditions lead the firm to produce 242 units. What would the firm's optimal choice of K and L be in the short run? How about long run? c)

If a firm has the production function q = f(L, K) = L + 2K, then its technology exhibits:   constant returns to scale   increasing returns to scale   None of the above.   decreasing returns to scale   increasing marginal product

Catalina Films produces video shorts using digital editing equipment (K) and editors (L). The firm has the production function Q(K, L)=KxL, where Q is the hours of edited footage. The wage is $25, and the rental rate of capital is $50. The firm wants to produce 3,000 units of output at the lowest possible cost.a) Find the marginal product of each input.b) Determine whether the production function exhibits diminishing marginal product to each input.c) Find the marginal rate of technical substitution(MRTSLK)d) How does MRTSLK change as more L, is used holding output constant.e) Find the least costly combination of labor and capital to produce 3000 units

All of these statements about the production function are true EXCEPT a) the curve features 3 distinct regions: increasing returns to scale, constant returns to scale, and diminishing returns to scale. b)the curve's shape matches and its description of the interaction between the graph's axes represents the law of diminishing returns c) it can be applied to many economic markets d) one variation is used to show the difference between firm and market specific risk

Consider the production function: Y = z.f(K,N,L) where Y is output, z is a parameter capturing technology, K is capital, N is labour and L is the area of land.

A firm’s short-run production function is in the form of                        q = aLK +(bL^2)K −(cL^3)K , wherea, b, c > 0 are parameters. K is a constant. (a) Derive the marginal product of labor.(b) Find the level of L, expressed in terms of the parameters, at which the law ofdiminishing marginal product kicks in.

A 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=1

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