Question
In: Economics
production fuction is: y(K,L)=12√ KL K=capital L=labor a)find the equation for the MPL and MPK as...
production fuction is: y(K,L)=12√
KL
K=capital
L=labor
a)find the equation for the MPL and MPK as a fuction of K and
L.
b) . Suppose the number of stoves is fixed in the short run,
while the amount of labor used is variable. Fill in the table
below:
Output K L MPL MPK
12 1
12 4
12 9
12 16
Now suppose is in the long run, where both capital and labor
are variable factors of production.
i. Does this production function exhibit increasing,
decreasing, or constant returns
to scale? How do you know?
ii. Draw 2 graphs the isoquants associated with this
production function to illustrate your answer
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
A firm has a production function of Q = KL + L, where MPL = K...
A firm has a production function of Q = KL +
L, where MPL = K + 1 and
MPK = L. The wage rate (W) is
$100 per worker and the rental (R) is $100 per unit of
capital.
a. In the short run, capital (K) is fixed at 4 and the
firm produces 100 units of output. What is the firm's total
cost?
b. In the long run, what is the total cost of producing 100
units of...
2. Suppose that a firm's production function is given by Q = KL(MPK = L and...
2. Suppose that a firm's production function is given by Q =
KL(MPK = L and MPL = K), where Q is the quantity of output, K is
units of capital, and L is units of labor. The price per unit of
labor and capital are $30 and $20, respectively.
(a) How many units of labor and capital should the firm use if
it wants to minimize the cost of producing 600 units of output?
(b) Suppose that the firm...
The production function of a firm is given by F(K, L)=KL. Assume that capital (K) is...
The production function of a firm is given by F(K, L)=KL. Assume
that capital (K) is fixed at K=1 in the short run. Then the amount
of labor (L) needed to produce 4 unit of output is equal to
___.
The production function of a firm is given by F(K, L)=KL. Assume that capital (K) is...
The production function of a firm is given by F(K, L)=KL. Assume
that capital (K) is fixed at K=1 in the short run. Then the amount
of labor (L) needed to produce 4 unit of output is equal to ___.
Group of answer choices 16 1 4 8 2
Bridget's Brewery production function is given by y(K, L) = 2 root of KL, where K...
Bridget's Brewery production function is given by y(K, L) = 2
root of KL, where K is the number of vats she uses and L is the
number of labor hours. Does this production process exhibit
increasing, constant or decreasing returns to
scale?
Consider the following production function using capital (K) and labor (L) as inputs. Y = 10.K0.5L0.5....
Consider the following production function using capital (K) and
labor (L) as inputs. Y = 10.K0.5L0.5. The marginal product of labor
is (MPL=) 5.K0.5/L0.5, and marginal product of capital (MPK) =
5.L0.5/K0.5.a. If K = 100 and L=100 what is the level of output
Y?b. If labor increases to 110 while K=100, what is the level of
output?c. If labor increases to 110 while K=100, what is the
marginal product of labor?d. If labor increases to 120 while K=100,
what...
For the following production functions, find the returns to scales. 1. F(K,L)=K^0.3L^0.7 2. F(K,L)=2K+L 3. F(K,L)=KL...
For the following production functions, find the returns to
scales.
1. F(K,L)=K^0.3L^0.7
2. F(K,L)=2K+L
3. F(K,L)=KL
4. F(K,L)=K^0.2L^0.3
An explanation on how to do this, would be appreciated!
9•Chapter 3 – Factors of Production, Profits, MPL, MPK, Real, Cobb-Douglas, GDP expenditure equation, C(Y-T), I(r),...
9•Chapter 3 – Factors of Production, Profits, MPL, MPK, Real,
Cobb-Douglas, GDP expenditure equation, C(Y-T), I(r), MPC, Private
Savings, Public Savings, National Savings (S) = I, Effects of
Fiscal Policy on interest rates
•Assumptions: Closed, G, T, K, L and therefore Y exogenous
•Same throughout this entire block!
1.If G ↑ (or T ↓) then what happens to interest rates,
investment, and savings (do in the right order)? Do with G and T!
(Show graph)
The production function has two input, labor (L) and capital (K). The price for L and...
The production function has two input, labor (L) and capital
(K). The price for L and K are respectively W and V.
q = L + K a linear production function
q = min{aK, bL} which is a Leontief production function
1.Calculate the marginal rate of substitution.
2.Calculate the elasticity of the marginal rate of
substitution.
3.Drive the long run cost function that is a function of input
prices and quantity produced.
Capital (K) Labor (L) Output (Q) MPL APL MC AVC ATC 10 0 0 10...
Capital (K)
Labor (L)
Output (Q)
MPL
APL
MC
AVC
ATC
10
0
0
10
1
10
10
10
10
2
24
14
12
10
3
39
15
13
10
4
52
13
13
10
5
61
9
12.2
10
6
66
5
11
10
7
66
0
9.4
10
8
64
-2
8
Assume that each unit of labor costs $10 (the
wage for a breakfast shift) and that fixed cost is
$5. Also assume that there are no...
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