Question

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

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

*Q*
= 10*L*^{0.2}*K*^{0.3}.

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 2 decimal places.

$.

Answer #1

Suppose that the production function for Hannah and Sam's home
remodeling business is
Q
= F(L,K)
Q
= 10L0.4K0.1.
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=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]

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...

A U.S. apparel manufacturer is considering moving its production
abroad. Suppose its production function is:
q=L^0.60*K^0.40
In the United States, w=6 and r=4. At its Asian plant, the
firm will pay a 10% lower wage and a 10% higher cost of capital:
w*=6/1.10 and r*=1.10*4. What are L and K and what is the cost
of producing q=100 units in both countries? (for all responses,
enter a real number rounded to two decimal places)
In the U.S., L is 100,...

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...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 17 seconds ago

asked 18 seconds ago

asked 19 seconds ago

asked 5 minutes ago

asked 5 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 13 minutes ago

asked 13 minutes ago

asked 15 minutes ago

asked 15 minutes ago