Question

2. For each of the following production functions (a and b) find the following equations (i-iii)...

2. For each of the following production functions (a and b) find the following equations (i-iii) in terms of Q0, w and r.

i) MRTSL,K

ii) Long-run capital and labor demand curve.

iii) Short-run capital and labor demand curve if the firm is stuck with K= 4.

(a) Q = 3L^2/3K^1/3

(b) Q = LK + 7L

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
For each of the following production functions (a and b) find the following equations (i-iii) in...
For each of the following production functions (a and b) find the following equations (i-iii) in terms of Q0 ,w and r. i) MRTS L,K ii) Long-run capital and labor demand curve. iii) Long-run total cost curve. iv) Short -run capital and labor demand curve if the firm is stuck with K = 9. v) Short- run total cost if the firm is stuck with K =9 . (a ) Q = 5L^(1/2) * K ^(1/2) (b) Q = LK...
a firm produces a product with labor and capital as inputs. The production function is described...
a firm produces a product with labor and capital as inputs. The production function is described by Q=LK. the marginal products associated with this production function are MPL=K and MPK=L. let w=1 and r=1 be the prices of labor and capital, respectively a) find the equation for the firms long-run total cost curve curve as a function of quantity Q b) solve the firms short-run cost-minimization problem when capital is fixed at a quantity of 5 units (ie.,K=5). derive the...
For each of the following production functions: a) Q(K,L) = 2K + 3L b) Q(K,L) =...
For each of the following production functions: a) Q(K,L) = 2K + 3L b) Q(K,L) = K^0.5L^0.25 c)Q(K,L) = LK + L Write an equation and graph the isoquant for Q = 100. ? Find the marginal rate of technical substitution and discuss how M RT SLK ?changes as the firm uses more L, holding output constant. ?
Graph the short-run total product curves for each of the following production functions if K is...
Graph the short-run total product curves for each of the following production functions if K is fixed at K0 = 4. (a) Q = F(K, L) = 2K + 3L (b) Q = F(K, L) = K^(2)L^(2) Respectively, do they obey the law of diminishing returns?
A hat manufacturing firm has the following production function with capital and labor being the inputs:...
A hat manufacturing firm has the following production function with capital and labor being the inputs: Q = min(5L,3K) (it has a fixed-proportions production function). If w is the cost of a unit of labor and r is the cost of a unit of capital, derive the firm’s optimal inputs, long-run total cost curve, average cost curve, and marginal cost curve in terms of the input prices and Q. b) A firm has the linear production function Q = 2L...
A firm produces a product with labor and capital. Its production function is described by Q...
A firm produces a product with labor and capital. Its production function is described by Q = min(L, K). Let w and r be the prices of labor and capital, respectively. a) Find the equation for the firm’s long-run total cost curve as a function of quantity Q and input prices, w and r. b) Find the solution to the firm’s short-run cost minimization problem when capital is fixed at a quantity of 5 units (i.e., K = 5). Derive...
A firm’s production function is Q(L,K) = K^1/2 + L. The firm faces a price of...
A firm’s production function is Q(L,K) = K^1/2 + L. The firm faces a price of labor, w, and a price of capital services, r. a. Derive the long-run input demand functions for L and K, assuming an interior solution. If the firm must produce 100 units of output, what must be true of the relative price of labor in terms of capital (i.e. w/r) in order for the firm to use a positive amount of labor? Graphically depict this...
Consider the following firm with its demand, production and cost of production functions: (1) Demand: Q...
Consider the following firm with its demand, production and cost of production functions: (1) Demand: Q = 230 – 2.5P + 4*Ps + .5*I, where Ps = 2.5, I = 20. (2) Inverse demand function [P=f(Q)], holding other factors (Ps = 2.5 and I =20) constant, is, P=100-.4*Q. (3) Production: Q = 1.2*L - .004L2 + 4*K - .002K2; (4) Long Run Total Cost: LRTC = 2.46*Q + .00025*Q2 (Note: there are no Fixed Costs); (5) Total Cost: TC =...
2. Assume that a manufacturer faces a Cobb-Douglas production function, q=40K^0.5L^0.5 where q is output per...
2. Assume that a manufacturer faces a Cobb-Douglas production function, q=40K^0.5L^0.5 where q is output per period, L is labor, K is capital. The market price of labor (w) is $50 per unit and the price of capital (r) is $200 per unit. a. Specify and illustrate graphically the short-run MPl and APl for L = 5 to 30 units (assume that the level of capital is 25; use increments of 5 units of labor). Is this firm operating in...
For each of the following production functions, (i) sketch an isoquant, (ii) indicate whether each marginal...
For each of the following production functions, (i) sketch an isoquant, (ii) indicate whether each marginal product is diminishing, constant, or increasing points, and (iii) indicate whether the production function shows constant, decreasing, or increasing returns to scale. A) Q = f(L, K) = L2K3 B) Q = f(L, K) = 2L + 6K C) Q = f(L, K) = (minL, K) (1/2)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT