Question

Suppose the production function is F(K,L)=K^2*L^2 If Pl=Pk=1, find the cost minimizing input mix to make...

Suppose the production function is F(K,L)=K^2*L^2

  1. If Pl=Pk=1, find the cost minimizing input mix to make 10000 units. What is the cost of production?

  2. Repeat if Pk increases and is now 2 (don’t worry about non-round answers). What is the new cost of production?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find the cost minimizing input combinations in the following problems: - f(k, ℓ) = 4k^3 ℓ^2...
Find the cost minimizing input combinations in the following problems: - f(k, ℓ) = 4k^3 ℓ^2 , r = 2, w = 1, q = 100 - f(k, ℓ) = min{2k, 3ℓ}, r = 2, w = 3, q = 10 2. In the above question, you found the cost minimizing input combination that produces 100 units of output. Now find the cost minimizing input combination for any positive quantity of output q to obtain the firm’s conditional factor demand...
Consider a firm which has the following production function Q=f(L,K)=4?LK (MPL=2?(K/L) and MPK=2?(L/K). (a) If the...
Consider a firm which has the following production function Q=f(L,K)=4?LK (MPL=2?(K/L) and MPK=2?(L/K). (a) If the wage w= $4 and the rent of capital r=$1, what is the least expensive way to produce 16 units of output? (That is, what is the cost-minimizing input bundle (combination) given that Q=16?) (b) What is the minimum cost of producing 16 units? (c) Show that for any level of output Q, the minimum cost of producing Q is $Q.
1. Consider the production function q=K2L0.5   a) Find the cost minimizing quantities of K and L...
1. Consider the production function q=K2L0.5   a) Find the cost minimizing quantities of K and L for q = 100, r as the price of K and w as the price of L. b) Find the cost minimizing quantities of K and L for q = 1000, r as the price of K and w as the price of L. Explain whether or not the output expansion [change from part a) to part b)] is labor saving or capital saving.
a. A cost minimizing firm’s production is given by Q=L^(1/2)K^(1/2) . Suppose the desired output is...
a. A cost minimizing firm’s production is given by Q=L^(1/2)K^(1/2) . Suppose the desired output is Q=10. Let w=12 and r=4. What is this firm’s cost minimizing combination of K & L? What it the total cost of producing this output? b. Suppose the firm wishes to increase its output to Q=12. In the short run, the firm’s K is fixed at the amount found in (a), but L is variable. How much labor will the firm use? What will...
Question #2: Cost Minimization Problem Nike produces its sneakers using labor (L) and capital (K). Nike...
Question #2: Cost Minimization Problem Nike produces its sneakers using labor (L) and capital (K). Nike has the following production function Q = 50K1/5L1/4. The wage rate (PL) is $2 and the price of capital (PK) is $5. Nike wants to produce 1000 sneakers at the lowest possible cost. (a) Use the Lagrangian Method to find the cost-minimizing quantity of capital and labor to produce 1000 sneakers? Round your answers (b) What is the total cost of producing 1000 sneakers?...
A firm uses only two inputs L and K, which have prices PLand PK. Its production...
A firm uses only two inputs L and K, which have prices PLand PK. Its production function is q = 4L3K2 a. (3) Derive themarginal product of K and L (you can leave it unsimplified). b. (3) Derive the firm’s marginal rate of substitution including the formula you use (you can leave it unsimplified).. c. (3) Assume now instead that q = LK. Using this, solve for K(as a function of L and q). d. (8) Assume PL= 2, Pk=...
Without using a Lagrangian, find the cost minimizing levels of L and K for the production...
Without using a Lagrangian, find the cost minimizing levels of L and K for the production function q = L^.6K^.4 if the price of labor =10, the price of capital = 15, and desired output = 100. What is the total cost to produce that output?
q(L,K)=2LK=100; w=25; v=50; TC=500 i. find the cost-minimizing input combinations (L*,K*) ii Based on part i...
q(L,K)=2LK=100; w=25; v=50; TC=500 i. find the cost-minimizing input combinations (L*,K*) ii Based on part i grapg this cost minimization case iii. Now assume that w=30 and v=50. explain what happens to our isocost and (L*,K*) iv. Assume that w=25; v=50 repeat parts i and ii a. q(L,K)=2L+K=100 b. q(L,K)=min(2L,K)=100
Suppose that the production function for Hannah and Sam's home remodeling business is             Q = F(L,K)...
Suppose that the production function for Hannah and Sam's home remodeling business is             Q = F(L,K)             Q = 10L0.2K0.3. Assume the wage rate is $8,000 per week and the cost of renting a unit of capital is $2,000 per week. a. What is the least-cost input combination for remodeling 500 square feet each week?     Instructions: Round your answers to 2 decimal places.      units of labor and  units of capital. b. What is the total cost?          Instructions: Round your answer to...
For a firm with production function f(L,K)=√L+√K, find its cost function for arbitrary values of w...
For a firm with production function f(L,K)=√L+√K, find its cost function for arbitrary values of w and r. That is,find a formula for the cost of producing q units that includes q,and also w and r,as variables. Also find marginal and average cost,and draw a plot that shows both cost functions in the same graph.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT