Question

Suppose that the production function for Hannah and Sam's home
remodeling business is

*Q*
= *F*(*L*,*K*)

*Q*
= 10*L*^{0.4}*K*^{0.1}.

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.

Answer #1

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=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=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.

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...

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: ...

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.

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]

Suppose a business estimates his production function to be ?? =
?? ^0.25?? ^0.75 where Q is the output, K amount of capital and L
is amount of labor. Price of labor (wage rate) is $10 and price of
capital is $15.
(a) Calculate the slope of isoquant curve.
(b) Calculate the slope of isocost curve.
(c) Suppose the firm wants to produce 100 units of output. Find
the optimal combination of labor and capital.

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 that q=40, L=5 and K=25 is a point on the production
function
q=f(L,K).
Is it posssible for q=40, L=55, and K=26 to also be a point on
this production function? Why or why not?
The combination q= 40, Lequals=5, and Kequals=26
A.can be a point because we assume production functions hold
technology constant.
B.cannot be a point because we assume production functions
represent the short run.
C.cannot be a point because we assume production functions are
comprised of fixed...

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