Question

A firm pays $5 for each unit of capital. Labor costs $5 per hour for the...

A firm pays $5 for each unit of capital. Labor costs $5 per hour for the first 10 hours and $10 per hour for every hour thereafter. Draw the isocost curves for total costs of $50 and $100. Fully label your graph.

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
2. A monopolistically competitive firm produces 100 units of output per period, selling each unit for...
2. A monopolistically competitive firm produces 100 units of output per period, selling each unit for $75. Marginal revenue and marginal cost of the one-hundredth unit are each $50. Average total cost is $60. a) Does this situation correspond to short-run equilibrium? Why or why not? b) Does this situation correspond to long-run equilibrium? Why or why not? Draw a graph to support your answer. You can draw the graph by hand but label all axes and curves clearly.
Assume that a profit maximizer firm uses only two inputs, labor (L) and capital (K), and...
Assume that a profit maximizer firm uses only two inputs, labor (L) and capital (K), and its production function is f(K,L) = K2 x L. Its MRTS of capital for labor (i.e., how many units of capital does he want to give up one unit of labor) is given by MRTS = MPL / MPK = K / (2L) a) Assume that this firm wants to spend $300 for the inputs (total cost of factors of production). The wage per...
A firm currently uses two inputs, 5 units of skilled labor (Ls) and 40 units of...
A firm currently uses two inputs, 5 units of skilled labor (Ls) and 40 units of unskilled labor (Lu), to produce its output. Input prices equal $100 per hour for skilled labor and $10 per hour for unskilled labor. The firm's current input combination is cost-minimizing. Put numbers in the blanks to derive the equation for the total cost: The firm's total cost (TC) = _________* Ls + _______* Lu b. And use this TC equation to draw an isocost...
4.4 If unit 1 requires 6 labor hours and unit 5 requires 1.8324, what is the...
4.4 If unit 1 requires 6 labor hours and unit 5 requires 1.8324, what is the learning rate? What will unit 6 require? What have the first five units required in total? 4.6 If unit 1 required 200 hours to produce and the labor records for an Air Force contract of 50 units indicate an average labor content of 63.1 hours per unit, what was the learning rate? What total additional number of labor hours would be required for another...
3. A firm employs labor and capital by paying $40 per unit of labor employed and...
3. A firm employs labor and capital by paying $40 per unit of labor employed and $200 per hour to rent a unit of capital. The production function is given by: Q = 120L – 2L2 + 240K – 3K2, where Q is total output. a. At what level of labor (L) and capital (K) will output no longer increase (the maximum number to labor and capital that a firm would ever employ)? b. Determine the firm’s optimal combination or...
Gutbusters, a fast food restaurant, currently pays $8 per hour for servers and $80 per hour...
Gutbusters, a fast food restaurant, currently pays $8 per hour for servers and $80 per hour to rent ovens and other kitchen machinery. At it current input choice, Gustbusters uses seven hours of server time per unit of machinery time. (a) What is the slope of the isocost line representing $1200 in production cost, if labor is on the horizontal axis and capital is on the vertical axis? (b) The ratio of marginal products (capital to labor) is 12. Does...
A professional audit firm charged juniors at $50 per hour, seniors at $200 per hour and...
A professional audit firm charged juniors at $50 per hour, seniors at $200 per hour and the overhead rate for both was 100 per cent on direct labour. The firm added 5 per cent on total cost to arrive at a fee to be charged. If a job took 10 junior hours and 2 senior hours, what was the fee charged? Select one: a. $900 b. $945 c. $1470 d. $1890
The standard direct labor cost per unit for a company was $39 (= $26 per hour...
The standard direct labor cost per unit for a company was $39 (= $26 per hour × 1.5 hours per unit). During the period, actual direct labor costs amounted to $266,400, 10,400 labor-hours were worked, and 5,800 units were produced. Required: Compute the direct labor price and efficiency variances for the period. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
The standard direct labor cost per unit for a company was $24 (= $15 per hour...
The standard direct labor cost per unit for a company was $24 (= $15 per hour × 1.6 hours per unit). During the period, actual direct labor costs amounted to $145,600, 9,500 labor-hours were worked, and 6,600 units were produced. Required: Compute the direct labor price and efficiency variances for the period. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
The marginal product of labor is 100 boxes of software and wages are $10 per hour....
The marginal product of labor is 100 boxes of software and wages are $10 per hour. A machine that does the same work rents for $200 per hour and packages 1000 boxes per hour. If the firm is currently producing the amount it wishes, what should it do? A. Expand labor and reduce capital, the marginal product of capital is greater than the marginal product of labor B. Expand labor and reduce capital, as capital costs significantly more C. Expand...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT