Firm A's production function is the following: Q= Q(L,K)= 20LK Calculte the demand functions for labor...

Firm A's production function is the following:

Q= Q(L,K)= 20LK

Calculte the demand functions for labor and capital

Expert Solution

Rahul Sunny answered 2 years ago

Firm A’s production function is the following: Q=Q(L,K)=20LK Calculate the demand functions for labor and capital.

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...

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3. Consider the production function Q = K2L , where L is labor and K is...

3. Consider the production function Q = K2L , where L is labor and K is capital. a.[4] What is the Marginal Product of Capital for this production function? Is it increasing, decreasing, or constant? Briefly explain or show how you arrived at your answer. b.[4] Does this production function exhibit increasing, constant or decreasing returns to scale? Briefly explain or show how you arrived at your answer. c.[5] If the firm has capital fixed at 15 units in the...

Consider the production function Q = K2L , where L is labor and K is capital....

Consider the production function Q = K2L , where L is labor and K is capital. a.[4] What is the Marginal Product of Capital for this production function? Is it increasing, decreasing, or constant? Briefly explain or show how you arrived at your answer. b.[4] Does this production function exhibit increasing, constant or decreasing returns to scale? Briefly explain or show how you arrived at your answer. c.[5] If the firm has capital fixed at 15 units in the short...

Suppose the production function of a firm is given by q=L^1/4 K^1/4. The prices of labor...

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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 plant’s production function is Q = L^1/3 K^2/3, where L is hours of labor and...

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A given firm has the following production function; Q=f (L, K) the cost constraint is C=...

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2. Consider a firm with the following production function: Q = K 1/3 L 2/3 (a)...

2. Consider a firm with the following production function: Q = K 1/3 L 2/3 (a) Consider an output level of Q = 100. Find the expression of the isoquant for this output level. (b) Find the marginal product of labor, MPL. Is it increasing, decreasing, or constant in the units of labor, L, that the firm uses? (c) Find the marginal product of capital, MPK. Is it increasing, decreasing, or constant in the units of capital, K, that the...

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