Question

A firm has production function q=10*(L0.5)*(K0.5). In the short term, capital K is fixed at 9....

A firm has production function q=10*(L0.5)*(K0.5). In the short term, capital K is fixed at 9.

(a) What is the multiplicative constant term in the firm's short-run inverse demand for labor?

(b) What is the multiplicative constant term in the firm's short-run direct demand for labor?

(c) What is the multiplicative constant term in the firm's long-run inverse demand for labor?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
14. A firm’s production function is Q = 12*L0.5*K0.5. Input prices are $36 per labor unit...
14. A firm’s production function is Q = 12*L0.5*K0.5. Input prices are $36 per labor unit and $16 per capital unit. The product’s price is P = $10. (Given: MP(L) = 6*L-0.5*K0.5; and MP(K) = 6*L0.5*K-0.5) In the short run, the firm has a fixed amount of capital, K = 9. Calculate the firm’s profit-maximizing employment of labor. (Note: short term profit maximization condition: MPR(L) = MC(L) ) In the long run, suppose the firm could adjust both labor and...
3. Consider the production function, Q = [L0.5 + K0.5] 2 . The marginal products are...
3. Consider the production function, Q = [L0.5 + K0.5] 2 . The marginal products are given as follows: MPL = [L0.5 + K0.5] L-0.5 and MPK = [L0.5 + K0.5] K-0.5 and w = 2, r = 1. A). what is the value of lambda B). Does this production function exhibit increasing, decreasing or constant returns to scale? C).Determine the cost minimizing value of L D).Determine the cost minimizing value of K E).Determine the total cost function F).Determine the...
1. A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of...
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...
Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which...
Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which of the following statements is (are) TRUE? A. Labor is subject to diminishing marginal productivity in the short run. B. Labor and capital are imperfect substitutes. C. The isoquants for paved roadways are convex. D. All of the above. Please help explain, thank you!
Suppose that firm face the following production function: Q = 2L^1/2 K^1/2 and firm has K...
Suppose that firm face the following production function: Q = 2L^1/2 K^1/2 and firm has K upper bar (is fixed) units of capital in short run. Suppose also that price of labor (W) is 16 and pricepf capital (r) is 1 and firm's objective output is 144. At what level K upper bar short run total cost would be equal to the long run total cost?
Suppose that a firm's fixed proportion production function is given by q = min(2k, 4L), and...
Suppose that a firm's fixed proportion production function is given by q = min(2k, 4L), and that the rental rates for capital and labor are given by v = 1, w = 3. A) Calculate the firm's long-run total, average, and marginal cost curves. B) Graph these curves. C) Suppose that k is fixed at 10 in the short run. Calculate the firm's short-run total, average, and marginal cost curves and graph them. D) Now suppose in the long run...
A firm produces output according to the production function. Q=sqrt(L*K) The associated marginal products are MPL...
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...
Consider a firm that used only two inputs, capital (K) and labor (L), to produce output....
Consider a firm that used only two inputs, capital (K) and labor (L), to produce output. The production function is given by: Q = 60L^(2/3)K^(1/3) . a.Find the returns to scale of this production function. b. Derive the Marginal Rate of Technical Substitutions (MRTS) between capital and labor. Does the law of diminishing MRTS hold? Why? Derive the equation for a sample isoquant (Q=120) and draw the isoquant. Be sure to label as many points as you can. c. Compute...
A firm has the following production function: q=5LK^0.5+2L^2K-L^3K What is its short-run production function if capital...
A firm has the following production function: q=5LK^0.5+2L^2K-L^3K What is its short-run production function if capital is fixed at K=9? What are the firm’s marginal product of labour and average product of labour in the short run? Show that the firm’s elasticity of output with respect to labour in the short run is a function of marginal product of labour and average product of labour. Calculate the short-run elasticity of output with respect to labour
A firm produces a product with labor and capital. Its production function is described by Q...
A firm produces a product with labor and capital. Its production function is described by Q = min(L, K). Let w and r be the prices of labor and capital, respectively. a) Find the equation for the firm’s long-run total cost curve as a function of quantity Q and input prices, w and r. b) Find the solution to the firm’s short-run cost minimization problem when capital is fixed at a quantity of 5 units (i.e., K = 5). Derive...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT