Question
In: Economics
q = K^1/2 L^1/2 p=$20, v=$8, w=$4 a) suppose k= 16, find short-run total and marginal...
q = K^1/2 L^1/2 p=$20, v=$8, w=$4
a) suppose k= 16, find short-run total and marginal costs, and also firm supply function. Find the price that the firm shuts down its production.
b) find firm profit maximization demand function and short-run supply function
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Assume that, in the short-run, K = 16, w = 3, r = 8, and Q...
Assume that, in the short-run, K = 16, w = 3, r = 8, and Q = 3
4KL. Graph the Total Cost, Fixed Cost, Variable Cost, Average Total
Cost, Average Variable Cost, Average Fixed Cost, and Marginal Cost
curves. Label your graph carefully.
A) Suppose that your production function is: q = L∙K + K. Find the short-run cost...
A) Suppose that your production function is: q = L∙K + K. Find
the short-run cost function.
q= K^1/3 L^1/3 w=$2, V=$16, k=27, p=$32 a)what's the firm level of labor and profit? b)what'd...
q= K^1/3 L^1/3 w=$2, V=$16, k=27, p=$32
a)what's the firm level of labor and profit?
b)what'd you suggest for adjustment of short-run and future
amount of K and L?
6. Suppose the production function is given by Q=1/20*L^1/2*K^1/4;price of labor(w) = 0.50 and price of...
6. Suppose the production function is given by
Q=1/20*L^1/2*K^1/4;price of labor(w) = 0.50 and price of capital
(r) = 4: The market price for the output produced is P= 560: (a)
Short-run production:
ii. Write down this firm's LONG-RUN cost minimization problem.
[Note: In long-run, nothing is fixed, so the firm can choose both
labor and capital optimally to minimize its cost.]
iii. Solving the long-run cost minimization problem, we get the
long-run cost function C(Q) = (12)*(5Q)^4/3:
Find out...
Consider the production function from question 1: q = L^1/5 K^4/5. Marginal cost is $5, P=(8−...
Consider the production function from question 1: q = L^1/5
K^4/5. Marginal cost is $5, P=(8− 1 2q), and FC = $1.
(a) What is II*? That is, what is the maximum profit?
(b) Should this company shut-down based on profit function, q*,
maximum profit?
(c) Suppose that the profit amount found in (a) is the long-run
equilibrium profit. Is this company in a perfectly competitive
market?
Multiple Choice: 1. Suppose the firm's production process is given by Q = 2K^(1/2)*L. If K=16...
Multiple Choice:
1. Suppose the firm's production process is
given by Q = 2K^(1/2)*L. If K=16 and L=8 what is the marginal
productivity of capital?
a) 1
b) 2
c) 5
d) 6
e) 8
2. Which of the following is not an assumption
we make about perfectly competitive markets?
a) Firms are price-takers
b) Firms sell identical products
c) Firms earn positive profit in the short-run but zero profit
in the long-run
d) Firms can freely enter or exit...
Multiple Choice: 1. Suppose the firm's production process is given by Q = 2K^(1/2)*L. If K=16...
Multiple Choice:
1. Suppose the firm's production process is
given by Q = 2K^(1/2)*L. If K=16 and L=8 what is the marginal
productivity of capital?
a) 1
b) 2
c) 5
d) 6
e) 8
2. Which of the following is not an assumption
we make about perfectly competitive markets?
a) Firms are price-takers
b) Firms sell identical products
c) Firms earn positive profit in the short-run but zero profit
in the long-run
d) Firms can freely enter or exit...
Consider a firm with a production function of the following form:F (L, K) = L(1/4)K(1/2) 20...
Consider a firm with a production function of the following
form:F (L, K) = L(1/4)K(1/2)
20
the corresponding marginal products are
MPL = 1 L(−3/4)K(1/2)
4 20MPK = 1 L(1/4)K(−1/2)
2 20
The cost of a unit of labour is the wage rate w and the cost of a
unit of capital is the
rental rate r. The firm is free to adjust all factors of
production. (19 points)
a. Does this production function exhibit decreasing returns,
increasing returns, or...
demand p=20-q total cost =20+q+q^2 find price ,quantity, and profit for a monoplist firm price ,quntitiy,...
demand p=20-q
total cost =20+q+q^2
find
price ,quantity, and profit for a monoplist firm
price ,quntitiy, and profit for purely commpetitive firm
Consider production function Q= L^3 * K^4 - L^2 (a) Determine the MRTS L,K for this...
Consider production function Q= L^3 * K^4 - L^2
(a) Determine the MRTS L,K for this production function
(b) Does this production function have an uneconomic region?
If so, describe the region algebraically. (Hint: your answer will
be an inequality like this: K<5L)
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