Question
In: Economics
Question Three If the long-run production function is q = 0.4KL 0.5 , what is the...
Question Three
If the long-run production function is q = 0.4KL 0.5 , what is the firm’s short-run production function if K = 5 units? What is the firm’s output when L = 16 workers? What is the firm’s marginal product of labor and the average product of labor when L = 16 workers? Does this production function exhibit diminishing returns to labor?
Question Four
Suppose that 3M has the production function q=KL, and the input prices are given by r=$2, w=$3. The 3M wants to produce 600 unit of output and minimize cost of production.
(a) What amounts of capital and labor inputs should be used by the 3M?
(b) What is the minimum cost of production?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
The short-run production function for sea kayaks is given by Q = 30L^0.5 (read as Q...
The short-run production function for
sea kayaks is given by Q = 30L^0.5 (read as Q = 30 times L taken to
the power of 0.5), where Q is the number of sea kayaks produced and
L is the number of employees. Complete this table and round all
answers to two decimal points:
L
Q
MPL
APL
0
1
2
3
4
5
6
7
In this space, graph the short-run production function, show
labels!
In this space, graph the...
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
. Distinguish the long-run production from the short-run and explain the various long run production function...
. Distinguish the long-run production from the short-run and
explain the various long run production function with the help of
isoquants.
5.3 An electricity-generating firm estimates its production function to be: Q = 10K(0.5) F(0.5) Where: Q...
5.3 An electricity-generating firm estimates its production
function to be:
Q = 10K(0.5) F(0.5) Where: Q = monthly
electricity production measured in kilowatt-hours
K = machine hours (capital) per month & F = fuel in gallons per
month
The rental cost of capital is $8 per
machine hour and the cost of fuel is $4 per gallon.
a) State and illustrate the conditions that determine the firm’s
cost-minimizing use of fuel and capital. Determine the firm’s
optimal ratio...
Question 4 A firm has the short-run production function as follows: Q = L + 15L2...
Question 4
A firm has the short-run production function as follows:
Q = L + 15L2 – 0.5L3,
where Q = total products per period and L = number of workers
employed per period.
4.1) Derive the marginal product of labor (MPL). At
what number of workers (L) does the law of diminishing returns
begin?
MPL = f(L) = __________________________________
Law of diminishing return begins when L
= ___________ workers.
4.2) Derive the average product of labor (APL). Find
the number...
Suppose a firm's short run-run production function is q = 2 * L0.5 , the firm...
Suppose a firm's short run-run production function is q = 2 *
L0.5 , the firm faces a fixed price of L at PL = 4, and
the firm’s fixed cost is 50.
a. Derive the short-run total cost and total variable cost
functions, and then solve for the marginal cost, average variable
cost, and average total cost functions. Assume the firm is a
marginal price taker at P = 60, solve for the firm’s
profit-maximizing amount of L to...
Difference between production in the short run and production in the long run: 1. What is...
Difference between production in the short run and production in
the long run:
1. What is the difference between the short-run and long-run? Is
there a fixed time period associated with short-run and long-run?
Explain why or why not.
2. What happens to output in the short-run as production
increases? What inputs are "fixed" and which input is variable in
the short-run? How does this explain diminishing marginal
productivity?
3. What might happen to output in the long-run as the...
a. Distinguish between the short run and the long run production function. Discuss the four factors...
a. Distinguish between the short run and the long run
production function. Discuss the four factors of production
elaborately. Provide at least 5 examples of each.
b.
Bangladesh a labor intensive country. So the labor is cheaper than
other factors of production. Consider this case: The number of
Business graduate is higher than the Doctor. Consequently, the
price or wage of Business graduate will be lower than the wage of
Doctor. That discourages the prospective student to be a Business...
A Korean electronic chip manufacturer has a production function given by Q=L^(0.5)K^(0.5). Assume the Wage rate...
A Korean electronic chip manufacturer has a production function
given by Q=L^(0.5)K^(0.5). Assume the Wage rate is $45 and the cost
of capital is $60. Use the Excel to determine the amount of
capital, K, needed to produce 20 units of output for each value of
labor, L. starting from L=2 and going to 40 in increments of 1.
Plot this isoquant and upload your excel sheets.
A Korean electronic chip manufacturer has a production function
given by Q=L^(0.5)K^(0.5). Assume...
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