Question

The production function of a company is

Q = K^{0.4} L^{0.6}

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.

Answer #1

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 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 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
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,...

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)
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=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.

for a firm with Cobb-Douglas production function
q = f (k, L) = k ^ (1/2) L ^ (1/2)
calculate the total, average and marginal cost.

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...

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: ...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 1 minute ago

asked 2 minutes ago

asked 3 minutes ago

asked 3 minutes ago

asked 8 minutes ago

asked 9 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 16 minutes ago