Question

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)* = *Q*^{2}.

Answer #1

complete answer is given in picture. Give it a thumbs up

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 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
= 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 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 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 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]

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...

A firm can manufacture a product according to the production
function Q = F (K, L) = K0.75 L0.25 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...

A firm can manufacture a product according to the production
function Q = F (K, L) = K0.75 L0.25 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...

Consider that the production function Q= F(K,L) = 3K + 9L
Determine the mix of output that minimizes costs when the wage
is $20 and the price of capital is $30.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 12 minutes ago

asked 19 minutes ago

asked 23 minutes ago

asked 29 minutes ago

asked 45 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago