Question

10. Suppose the short-run production function is q​ = L.5 . If the marginal cost of...

10. Suppose the short-run production function is q​ = L.5

.

If the marginal cost of producing the tenth unit is​ $5, what is the wage per unit of​ labor?

A.​$1

B.​$0.25

C.​$0.5

D.It cannot be determined without more information

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
Suppose the short-run production function is q = 10 ∗ L. If the wage rate is...
Suppose the short-run production function is q = 10 ∗ L. If the wage rate is $20 per unit of labor, then MC equals ______.
Suppose the short-run production function is q = 10 L. If the wage rate is $10...
Suppose the short-run production function is q = 10 L. If the wage rate is $10 per unit of labor and fixed cost is $10,000, what is the firm's cost equation? A) 10,000 + q B) 10,000/q. C) 10 +10,000q. D) 10q + 10.
Suppose the short-run production function is q = 10L. If the wage rate is $40 per...
Suppose the short-run production function is q = 10L. If the wage rate is $40 per unit of labor, a. AVC equals ____.b. MC equals _____. Charlie’sdoughnut company has two separate bakeries. For bakery one, the total cost function is TCl = 100 + .005Ql2, and the marginal cost function is MC1= .01Q1. For bakery two,the total cost function is TC2 = 50 + .01Q22, and the marginal cost function is MC2= .02Q2Where Qland Q2are dozens of doughnuts. a.How should...
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in...
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in machine-hours per year and L is measured in hours of labor per year. The cost of capital (rental rate denoted by r) is $1200 per machine-hour and the cost of labor (wage rate denoted by w) is $12 per hour. Hint: if you don’t calculate the exponential terms (or keep all the decimals when you do), you will end up with nice numbers on...
1. Suppose a short-run production function is described as Q = 30L - 0.05L^2 where L...
1. Suppose a short-run production function is described as Q = 30L - 0.05L^2 where L is the number of labors used each hour. a. Derive the equation for Marginal Product of Labor b. Determine how much output will the 200th worker contribute: c. Determine the amount of labor (L) where output (Q) is maximized (known as Lmax): d. If each unit of output (Q) has a marginal revenue (price) of $5 and the marginal cost of labor is $40...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L^2 where L...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L^2 where L is the number of labors used each hour. The firm’s cost of hiring (additional) labor is $20 per hour, which includes all labor costs. The finished product is sold at a constant price of $40 per unit of Q. a. How many labor units (L) should the firm employ per hour b. Given your answer in a, what is the output (Q) per hour...
Suppose a short-run production function is described as Q = L – (1/400)L2where L is the...
Suppose a short-run production function is described as Q = L – (1/400)L2where L is the number of labors used each hour. The firm’s cost of hiring (additional) labor is $16 per hour, which includes all labor costs. The finished product is sold for $40 per unit of Q. c. How many labor units(L) should the firm employ per hour if they want to maximize profit?    L = 120 f. Suppose that the price of the product is unchanged...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L2 where L...
1. Suppose a short-run production function is described as Q = 2L – (1/800)L2 where L is the number of labors used each hour. The firm’s cost of hiring (additional) labor is $20 per hour, which includes all labor costs. The finished product is sold at a constant price of $40 per unit of Q. a. How many labor units (L) should the firm employ per hour: b. Given your answer in a, what is the output (Q) per hour:...
Suppose, the production function for X company is given by ? = 5(??) 0.5 where, Q...
Suppose, the production function for X company is given by ? = 5(??) 0.5 where, Q is the amount of output produced, K is the amount of capital employed in production and L is the amount of labor employed in production. The prices of capital and labor are given by ?? = $48 and ?? = $75. a)Express the total cost in terms of K and Q. b)Derive the expression of marginal cost of capital. c)Derive the long-run cost function...
The production of sunglasses is characterized by the production function Q(L,K)= 4L1/2K 1/2 . Suppose that...
The production of sunglasses is characterized by the production function Q(L,K)= 4L1/2K 1/2 . Suppose that the price of labor is $10 per unit and the price of capital is $90 per unit. In the short-run, capital is fixed at 2,500. The firm must produce 36,000 sunglasses. How much money is it sacrificing by not having the ability to choose its level of capital optimally? That is, how much more does it cost to produce 36,000 sunglasses the short-run compared...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT