Question

If output is produced according to Q = 4LK, the price of K is $10, and the price of L is $5, then the cost minimizing combination of K and L capable of producing 2 units of output is

Answer #1

If output is produced according to Q = 4LK, the price of K is
$10, and the price of L is $40, then the cost minimizing cost
minimizing combination of K and L capable of producing 64 units of
output is

Output is produced according to Q= 4LK, where L is the quantity
of labor input and K is the quantity of capital input. If the price
of K is $10 and the price of Lis $5, then the cost-minimizing
combination of Kand L capable of producing 32 units of output
is

a. A cost minimizing firm’s production is given by Q=L1/2K1/2.
Suppose the desired output is Q=10. Let w=12 and r=4. What is this
firm’s cost minimizing combination of K & L? What it the total
cost of producing this output?
b. Suppose the firm wishes to increase its output to Q=12. In
the short run, the firm’s K is fixed at the amount found in (a),
but L is variable. How much labor will the firm use? What will the...

a. A cost minimizing firm’s production is given by
Q=L^(1/2)K^(1/2)
. Suppose the desired output is
Q=10. Let w=12 and r=4. What is this firm’s cost minimizing
combination of K & L? What it the
total cost of producing this output?
b. Suppose the firm wishes to increase its output to Q=12. In
the short run, the firm’s K is fixed
at the amount found in (a), but L is variable. How much labor
will the firm use? What will...

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.

20. Output for a simple production process is given by Q = K2L,
where K denotes capital, and L denotes labor. The price of capital
is $30 per unit and capital is fixed at 5 units in the short run.
The price of labor is $20 per unit.
a. The total cost of producing 100 units of output is _____.b.
The variable cost of producing 100 units of output is ____.
21.Determine whether the production function Q = K3/2L2 exhibits...

1. Consider the production
function q=K2L0.5
a) Find the cost minimizing quantities of K and L for q = 100, r
as the price of K and w as the price of L.
b) Find the cost minimizing quantities of K and L for q = 1000,
r as the price of K and w as the price of L. Explain whether or not
the output expansion [change from part a) to part b)] is labor
saving or capital saving.

Find the cost minimizing input combinations in the following
problems:
- f(k, ℓ) = 4k^3 ℓ^2 , r = 2, w = 1, q = 100
- f(k, ℓ) = min{2k, 3ℓ}, r = 2, w = 3, q = 10
2. In the above question, you found the cost minimizing input
combination that produces 100 units of output. Now find the cost
minimizing input combination for any positive quantity of output q
to obtain the firm’s conditional factor demand...

A firm produces output according to the production function.
Q=sqrt(L*K) The
associated marginal products are MPL = .5*sqrt(K/L) and MPK =
.5*sqrt(L/K)
(a) Does this production function have increasing, decreasing, or
constant marginal
returns to labor?
(b) Does this production function have increasing, decreasing or
constant returns to
scale?
(c) Find the firm's short-run total cost function when K=16. The
price of labor is w and
the price of capital is r.
(d) Find the firm's long-run total cost function...

2. A firm combines labor (L) and capital (K) to produce output
(Q). The price of one unit
of labor is 50 and the price of one unit of capital is 20. This
firm is producing in the
short run (remember that in the short run there is one fixed
resource, in this case,
capital). Complete the following information for this firm
L K Q TVC TFC TC ATC AVC AFC MC
0 20 0 -
1 18
2 60...

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