Question
In: Economics
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 output?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A firm has production function q = 100 L + KL− L^2 − K^2 The price...
A firm has production function q = 100 L + KL− L^2 − K^2 The
price of the good is $1. The wage is $10, and the price of capital
is $30. Assume that the firm is a price - taker in a perfectly
competitive market.
a. What will the firm’s profit maximizing choice of capital and
labor be?
b. Suppose that the firm’s capital is fixed in the short-run and
wage rises to $20. What is the firm’s new...
27) A firm has a production function Q = KL, where Q is the quantity of...
27) A firm has a production function Q = KL, where Q is the
quantity of output, K is the amount of capital and L is the amount
of labor. MPL=K and MPK=L.
a) Suppose that capital is fixed at K=10 in short run. In this
case, the marginal product of labor is MPL=10. Does this production
function exhibit diminishing marginal returns to labor?
b) Suppose that in the short run, K is fixed at 10. The interest
rate is...
A firm has a production function Q = KL, where Q is the quantity of output,...
A firm has a production function Q = KL, where Q is the quantity
of output, K is the amount of capital and L is the amount of labor.
MPL=K and MPK=L .
a) Suppose that capital is fixed at K=10 in short run. In this
case, the marginal product of labor is MPL=10. Does this production
function exhibit diminishing marginal returns to labor?
b) Suppose that in the short run, K is fixed at 10. The interest
rate is...
A firm that produces shirts has a production function q=f(K,L)=KL/10, that has a cost price of...
A firm that produces shirts has a
production function q=f(K,L)=KL/10, that has a cost price of labor=
$10 and cost price of capital=$100. Find the firm’s long run
average cost function, and marginal cost function. Graph AC(q) and
MC(q) and identify the firm’s long-run supply curve.
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
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...
1a. The production function for computers is q(K,L) = 7K1/3L2 where K=capital and L=labor. A firm...
1a. The production function for computers is q(K,L) = 7K1/3L2
where K=capital and L=labor. A firm has two units of capital (K=2)
which it cannot change. A manager wants to know the marginal
productivity of labor if the firm goes from 2 to 3 workers.
Calculate the marginal productivity of labor for the manager.
Explain your answer carefully to the manager who is not familiar
with what the marginal productivity of labor means.
1b. Last year the price of bread...
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?
Suppose that output Q is produced with the production function Q = f(K;L), where K is...
Suppose that output Q is produced with the production function Q
= f(K;L), where K is the number of machines used, and L the number
of workers used. Assuming that the price of output p and the wage w
and rental rate of capital r are all constant, what would the prot
maximizing rules be for the hiring of L and K? (b) What is
theMRTSK;L for the following production function: Q = 10K4L2? Is
this technology CRS, IRS or...
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