Question

A pie shop has a production function given by Q = 30K1/3L1/3, where Q is the...

A pie shop has a production function given by Q = 30K1/3L1/3, where Q is the number of pies produced per hour, K is the number of ovens (which is fixed at 8 in the short run), and L is the number of employed workers. How many pies can be produced per hour with 27 workers in the short run?

Question 9 options:

200

150

220

180

Question 10 (2 points)

The production function for an automobile industry is given by Q = 2 K1/2L1/2, where Q is the number of automobiles produced per day, K is the number of machines, and L is the number of workers employed by the factory. Suppose that K is fixed at 100 and the rent for a unit of capital, r, is given by $20. Also, the wage for per worker, w, is $100. Find the total cost function.

Question 10 options:

TC = 2000 + Q1/2/4

TC = 2500 + Q/2

TC = 2500 + Q1/2/4

TC = 2000 + Q2/4

Question 11 (1 point)

Which situation will likely give rise to diminishing marginal product of labor?

Question 11 options:

Hell’s Kitchen undertakes a massive expansion, doubling both the size of its kitchen and number of cooks.

Chipotle, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift.

Wired earphones manufacturers are going out of business because of increased competition from Bluetooth earphones manufactures.

A landscaping firm replaces all of its self-propelled lawnmowers with push mowers.

Homework Answers

Answer #1

1 (D) 180 units

Q = 30K1/3L1/3,

= 30 (8 ) 1/3 (27)1/3

= 30 (2)3*1/3 (3)3*1/3

= 30* 2* 3

=180

2. (D) TC = 2000 + Q2/4

= K* R+ L * W

= 100*20+ L* 100

= 2000+ q=2L1/2

=2000+ (q/2)2

=2000+ Q2/4

3(B) chipotle, which has enough counter space for three cooks per shift, decides to hire a fourth cook per shift.

reason Chipotle already have three cooks per shift, hiring one more cook will not add utility to production of food it will cause diminishing marginal product of labor.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The production function at Jerry’s Copy Shop is q=1000min(L,3K) , where q is the number of...
The production function at Jerry’s Copy Shop is q=1000min(L,3K) , where q is the number of copies per hour, L is the number of workers, and K is the number of copy machines. Draw the following graphs. The graphs should have the number of workers, L, on the x-axis. Draw the isoquants for this production function for q = 1000, 2000, and 3000. [4 pts.] Draw the total product of labor (TPL), average product of labor (APL), and marginal product...
Suppose the production function for a bakery is: Q = 4K0.4L0.6 where Q is the number...
Suppose the production function for a bakery is: Q = 4K0.4L0.6 where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. Use calculus for the following: a. determine a function for the marginal product of labor. b. determine a function for the marginal product of capital. c. find the marginal rate of technical substitution. d. discuss how MRTSLK changes as the firm uses more...
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...
A firm produces an output with the production function Q = KL, where Q is the...
A firm produces an output with the production function Q = KL, where Q is the number of units of output per hour when the firm uses K machines and hires L workers each hour. The marginal products for this production function are MPK= L and MPL= K. The factor price of K is 4 and the factor price of L is 2. The firm is currently using K = 16 and just enough L to produce Q = 32....
The production function for the Roundtree Laser Company is: Q=(10L^.5)(K^.3)(M^.3) where: Q: number of lasers produced...
The production function for the Roundtree Laser Company is: Q=(10L^.5)(K^.3)(M^.3) where: Q: number of lasers produced per week L: amount of labor used per week K: the amount of capital used per week M: quantity of raw materials used per week a) Does the production function exhibit decreasing returns to scale? b) Does the production function exhibit diminishing marginal returns?
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This...
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following: a. The production function in Equation 6.7 is a special case of the Cobb-Douglas. b. If a+b=1, a doubling of K and L will double q. c. If a +b < 1, a doubling of K and L will less than double q. d. If a +b > 1, a doubling...
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. Consider a firm with the following production function: Q= 60 L^2 K^1/2 -4L^3 The firm...
1. Consider a firm with the following production function: Q= 60 L^2 K^1/2 -4L^3 The firm is operating in the short run with a fixed capital stock of K=4 Use this to answer the following questions: 2. Suppose the firm in the previous question is able to increase its capital to K ¯ = 9.   After what quantity of labor does diminishing marginal returns now occur? What is the maximum output the firm can now produce? After what number of...
1. A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of...
1. A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of units of output produced, l the number of units of labor input used and k the number of units of capital input used. This firm profit function is π = p·q(l,k) – w·l – v·k, where p is the price of output, w the wage rate of labor and v the rental rate of capital. In the short-run, k = 100. This firm hires...
Ed’s building company has the following production function q = 10KL − 1/2KL^2 where q is...
Ed’s building company has the following production function q = 10KL − 1/2KL^2 where q is the number of houses built, L is the quantity of labor Ed employs and K is the quantity of capital Ed uses. In the short run, K is fixed at K¯ = 2 a. Derive MPL and APL. b. For what values of L is the MPL > 0? c. For what values of L is the MPL diminishing? In the long run, both...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT