Question

The production function of a company is Q = K0.4 L0.6 If K costs 10 and...

The production function of a company is

Q = K0.4 L0.6

If K costs 10 and L costs 14 and the total production cost must not exceed 1276, what is the maximum output?

Submit the answer with two decimal places.

Homework Answers

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
2.   Bridgestone Company has the following production function for tires: Q = 20 K 0.2 L...
2.   Bridgestone Company has the following production function for tires: Q = 20 K 0.2 L 0.8, where K represents machine hours and L represents labor hours. They pay $ 15 per hour to rent their machines and $ 10 per hour to their workers. They have $ 12,000 to spend on capital and labor. A. Does this production function exhibit constant, increasing, or decreasing returns to scale? B. Does this production function exhibit diminishing marginal returns to capital and...
A firm produces an output with the production function Q=K*L2, where Q is the number of...
A firm produces an output with the production function Q=K*L2, 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 product for this production function are MPk =L2 and MPl = 2KL. The factor price of K is $1 and the factor price of L is $2 per hour. a. Draw an isoquant curve for Q= 64, identify at least three points on this curve....
A firm’s production function is Q = min(K , 2L), where Q is the number of...
A firm’s production function is Q = min(K , 2L), where Q is the number of units of output produced using K units of capital and L units of labor. The factor prices are w = 4 (for labor) and r = 1 (for capital). On an optimal choice diagram with L on the horizontal axis and K on the vertical axis, draw the isoquant for Q = 12, indicate the optimal choices of K and L on that isoquant,...
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...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)   Suppose the firm has a fixed cost FC=6, the price of labor is w = 64 and the price of capital is r = 4. Derive the firm’s total cost function, TC(Q). b)   What is the firm’s marginal cost? c)   Graph the firm’s isoquant for Q = 20 units of output. On the same graph, sketch the firm’s isocost line associated with the total...
A U.S. apparel manufacturer is considering moving its production abroad. Suppose its production function​ is: q=L^0.60*K^0.40...
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​,...
QUESTION 14 Latte Larry’s has the following production function:: q = K^{0.5}L^{0.5} and faces input prices...
QUESTION 14 Latte Larry’s has the following production function:: q = K^{0.5}L^{0.5} and faces input prices w = 1 and r = 4. Calculate Larry's cost function and use it to answer the following question: How much does it cost Larry to produce 10 units of output?
The production function is q = (10KL)/(K+L) where L = labor, K= capital The cost function...
The production function is q = (10KL)/(K+L) where L = labor, K= capital The cost function is C = wL + vK where w = wages and v = cost of capital Assume K is fixed in the short run at K = 20 a.) Find the short run cost function. Find also the short run average and marginal costs. b.) The shut-down price is defined as the minimum of average variable cost. For this cost function, what is the...
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 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...