Question
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...
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: 400QB: 200Q2C: 2,000Q0.5D: 200Q+400Q2
(Click to select)Formula DFormula
BFormula AFormula C
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Suppose that Hannah and Sam have the production function Q=F(L,K) Q=10L0.5K0.5. The wage rate is $1,000...
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 the production function for Hannah and Sam’s home remodeling business is Q=F(L,K)Q=F(L,K)  
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)...
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)...
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...
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.
What is the expansion path for the firm with the production function of f(L, K) =...
What is the expansion path for the firm with the production
function of f(L, K) = (L+1)K
firm can manufacture a product according to the production function Q = F (K, L) =...
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’s production function is Q(L,K) = K^1/2 + L. The firm faces a price of...
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...
Suppose the short-run production function is q = 10 ∗ L. If the wage rate is...
Suppose the short-run production function is q = 10 ∗ L. If the
wage rate is $20 per unit of labor, then MC equals ______.
Consider that the production function Q= F(K,L) = 3K + 9L Determine the mix of output...
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
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 20 seconds ago
asked 2 minutes ago
asked 5 minutes ago
asked 8 minutes ago
asked 8 minutes ago
asked 36 minutes ago
asked 48 minutes ago
asked 49 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago