Question

Suppose that Hannah and Sam have the production function Q=F(L,K) Q=10L0.5K0.5. The wage rate is $1,000 per week and a unit of capital costs $4,000 per week.

a. True or false? If we plot L along the horizontal axis and K along the vertical axis, then Hannah and Sam's output expansion path is a straight line that passes through the origin and has a slope of 0.25.

b. What is their cost function? Choose from the options below.

A:400Q

B:200Q^2

C:2,000Q^0.5

D:200Q+400Q^2

Answer #1

Please ask your query if any in comment.

PLEASE RATE THUMBS UP ??

THANKYOU

Suppose that Hannah and Sam have the production function
Q=F(L,K)Q=F(L,K)
Q=10L0.5K0.5.Q=10L0.5K0.5.
The wage rate is $1,000 per week and a unit of capital costs $4,000
per week.
a. True or false? If we plot L along the horizontal axis
and K along the vertical axis, then Hannah and Sam's
output expansion path is a straight line that passes through the
origin and has a slope of 0.25.
TrueFalse
b. What is their cost function? Choose from the options
below.
A:400QB:200Q2C:2,000Q0.5D:200Q+400Q2A: ...

Suppose that the production function for Hannah and Sam's home
remodeling business is
Q
= F(L,K)
Q
= 10L0.4K0.1.
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 400
square feet each week?
units of labor and units
of capital.
b. What is the total cost?
Instructions: Round your
answer to 2 decimal places.

Suppose that the production function for Hannah and Sam’s home
remodeling business is
Q=F(L,K)Q=F(L,K)
Q=10L0.2K0.3.Q=10L0.2K0.3.
The wage rate is $1,500 per week and the cost of renting a unit of
capital is $1,000 per week. What is their cost function?
Instructions: Enter your answer as a whole
number.
C(Q) = Q2.

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...

Suppose that the production function for Hannah and Sam’s home
remodeling business is Q=F(L,K) Q=10L^0.2K^0.3. The wage rate is
$1,500 per week and the cost of renting a unit of capital is $1,000
per week.
What is their cost function? Instructions:
Enter your answer as a whole number. C(Q) = Q2.

A firm’s production function is Q = min(K , 2L), where Q
is the number of units of output produced using K units of capital
and L units of labor. The factor prices are w = 4 (for labor) and r
= 1 (for capital). On an optimal choice diagram with L on the
horizontal axis and K on the vertical axis, draw the isoquant for Q
= 12, indicate the optimal choices of K and L on that isoquant,...

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...

firm can manufacture a product according to the production
function
Q = F (K, L) = K0.75 L 0.25 a. What is this type of function
called? Are the inputs perfect substitutes or should they be used
in a fixed proportion instead? © (3pts) b. Suppose capital is fixed
at 81 units. If the firm can sell its output at a price of $200 per
unit and wage is $50, how many units of labor should the firm hire
in...

Suppose the short-run production function is q = 10 ∗ L. If the
wage rate is $20 per unit of labor, then MC equals ______.

Suppose a firm's production function is given by LaTeX:
Q\left(L,K\right)=4L^{0.65}K^{0.35}Q ( L , K ) = 4 L^0.65 K^0.35.
The wage is w= 25/ hour and the rent for capital is r= 25/hour. To
produce 350 units per hour, what is the minimum hourly cost of
production? Enter to the nearest $0.1. [number only, no $ sign]

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 10 minutes ago

asked 12 minutes ago

asked 16 minutes ago

asked 34 minutes ago

asked 52 minutes ago

asked 52 minutes ago

asked 56 minutes ago

asked 56 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago