You are told that q = 12 can be produced by (L,K) = (5,6) and (L′,K′) = (4,5). Explain whether each of the following two statements is true, false, or uncertain. (a) (q, L, K) = (12, 5, 6) represents an efficient production plan. (b) (q, L′, K′) = (12, 4, 5) represents an efficient production plan.

ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases 100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate. (a). How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)?  (b). What is the single-factor productivity for labor, per workday (8 hours)? Whatis the multi-factor productivity, for every dollar spent per shipping bag?

The demand and supply of pizza is defined by the following equations:   Qd = D(P, Y ) = 1 + Y − 2P   Qs = D(P, PM) = 2 P/PM   where, Qd is quantity demand, P is the price of each pizza sold, Y is the average income of consumers, Qs is the quantity supplied, and Pm is the price of inputs used in the production of pizza.   (a) List the endogenous and exogenous variables of this model   (b) Find the equilibrium price Pe and quantity Qe of pizza as a function of the exogenous variables.   (c) Use a simple demand and supply diagram to show what happens to the equilibrium price and quantity when there is an increase in one of the exogenous variables.

***PLEASE NOTE - An answer is NOT needed for parts A, B and C; these are included to assist with answering part D. Only an answer for part D is required, but it is derived from the previous answers***   Given: A farmer raises peaches using land (K) and labor (L), and has an output of ?(?,?)= ?0.5?0.5 bushels of apples.   a. Find several input combinations that give the farmer 6 bushels of apples. Sketch the associated isoquant on a graph, with L on the x-axis and K on the y-axis.   b. In the short run, the farmer only has 4 units of land. What is his short-run production function? Graph it for values of L from 0 to 16, with L on the x-axis and output on the y-axis. What is the name of the slope of this curve?   c. Assuming the farmer still only has 4 units of land, how much extra output does he get from adding 1 extra unit of labor if he is already using only 1 unit of labor? How much extra output does he get from adding 1 extra unit of labor if he is already using 4 units of labor?…

The Cobb-Douglas production function is a classic model from economics used to model output as a function of capital and labor. It has the form f(L, C)=²1C²2 where co. ₁, and care constants. The variable L represents the units of input of labor and the variable C represents the units of input of capital. (a) In this example, assume co5, c, 0.25, and c₂-0.75. Assume sach unit of labor costs $25 and each unit of capital costs $75. With $70,000 available in the budget, devalop an optimization model for determining how the budgeted amount should be allocated between capital and labor in order to maximize output. Max s.t. L, CZO € 70,000 (b) Find the optimal solution to the model you formulated in part (a). What is the optimal solution value (in units)? (Hint: When using Excel Solver, use the bounds 0S LS 3,000 and 0 s Cs 1,000. Round your answers to the nearest integer when necessary.) units at (L. C)=(

The time path of resources is described by X(t) = X(0)e*". If you graphed In X(t) on the y-axis, and had time (t) on the x-axis, then what would be the intercept of the line you drew? In X(0) There isn't enough information to tell gx