Question
In: Economics
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 ___.
Solutions
Expert Solution
4
(F(K, L) = KL = Q
where Q = 4 and K = 1
So, 1*L = 4
So, L = 4/1
So, L = 4
Thus, 4 units of labor is required to produce 4 units of output in the short run when capital is fixed at 1.)
Rahul Sunny answered 2 years agoRelated Solutions
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
3. Suppose the production function for widgets is given by:Q = f(K,L) = KL − 0.4K2...
3. Suppose the production function for widgets is given by:Q =
f(K,L) = KL − 0.4K2 − 0.4L2
(a) Suppose K = 10 (is fixed), derive an expression for and
graph the total product of labor curve (the production function for
a fixed level of capital) and the average productivity of labor
curve.
(b) At what level of labor input does the average productivity
reach a maxi- mum? How many widgets are produced at this point?
(c) Again, assuming K...
Consider the firm with production function given by q = f ( L , K )...
Consider the firm with production function given by q = f ( L ,
K ) = L ^(1/4) K^(1/4). If w = r = 4, what is the change in the
producer surplus when the price increases from $16 to $32? (round
your answer to one decimal place if necessary)
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...
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.
Suppose a production function is given by f(K,L) = KL1/3 and that the price of capital...
Suppose a production function is given by f(K,L) = KL1/3 and
that the price of capital is $10 and the price of labor is $16. The
capital is fixed at the level K ̅ = 4. What is the quantity of
labor that minimizes the cost of producing any given output? What
is the minimum cost of producing y units of output? What are the
marginal cost of production and the average total cost, average
variable cost and the average...
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...
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 a production function is given by F ( K , L ) = K 1 2...
Suppose a production function is given by F ( K , L )
= K 1 2 L 1 2, the price of capital “r” is $16, and the price of
labor “w” is $16.
a. (5) What combination of labor and capital minimizes the cost of
producing 100 units of output in the long run?
b. (5) When r falls to $1, what is the minimum cost of producing
100 pounds of pretzels in the short run? In the long...
2. Suppose a production function is given by F ( K , L ) = K 1...
2. Suppose a production function is given by F ( K ,
L ) = K 1 2 L 1 2, the price of capital “r” is $16, and the price
of labor “w” is $16.
a. (5) What combination of labor and capital minimizes the cost of
producing 100 units of output in the long run?
b. (5) When r falls to $1, what is the minimum cost of producing
100 pounds of pretzels in the short run? In the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- In two or three sentences, explain how you have seen the concept of grit work in...
- You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co.,...
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
ADVERTISEMENT