Using iso-cost, iso-quant analysis draw the following concepts a. perfect complements of labor and capital b....

Using iso-cost, iso-quant analysis draw the following concepts

a. perfect complements of labor and capital

b. a long run expansion path of a capital-intensive firm

c. substitution effect of a wage increase

d. constant returns to scale

e. economic efficient point, technological efficient points, technological inefficient points

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

A firm produces output using capital (K) and labor (L). Capital and labor are perfect complements...

A firm produces output using capital (K) and labor (L). Capital and labor are perfect complements and 1 unit of capital is used with 2 units of labor to produce 1 unit of output. Draw an example of an isoquant. If wages and rent are $2 and $3, respectively, what is the Average Total Cost? A firm has a production function given by Q=4KL where K, L and Q denote capital, labor, and output, respectively. The firm wants to produce...

Suppose low skilled labor and capital are substitutes but high skilled labor and capital are complements....

Suppose low skilled labor and capital are substitutes but high skilled labor and capital are complements. Over the past 45 years the price of capital has dropped substantially because of the computer revolution. Draw and explain 2 labor market diagrams To show what has happened to the demand for high and low skilled labor Now add new supply curves to your diagrams to show the effect of an increase in the number of high skilled workers and a decrease in...

when inputs K, L, are perfect complements, the isoquant is L-shaped, draw the graph, and then...

when inputs K, L, are perfect complements, the isoquant is L-shaped, draw the graph, and then show in the graph that increases in the wage rate cause only scale effect but no substitution effect. Also, will there be any differences between the short-run labor demand curve and the long-run labor demand curve?

. Using the concepts of opportunity cost, marginal analysis and sunk cost what advice would you...

. Using the concepts of opportunity cost, marginal analysis and sunk cost what advice would you give the following people: (3 points) A) Dani loves to eat at the buffet at the casino. She gorges herself so that she is sick for the next two days. She says she does it because it doesn’t cost her anything extra? Your advice? B) Layne works for a surveying company that spends $20k on surveys to decide whether or not to launch a...

4. Use the following statements to answer this question: I. The income-consumption curve for perfect complements...

4. Use the following statements to answer this question: I. The income-consumption curve for perfect complements is an upward sloping straight line. II. The price-consumption curve for perfect complements is an upward sloping straight line. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.

Explain general concepts of the production and cost analysis

Define the following concepts: (a) constant capital; (b) variable capital; (c) rate of surplus value; (d)...

Define the following concepts: (a) constant capital; (b) variable capital; (c) rate of surplus value; (d) mass of surplus value.

Using complements (with respect to 1) of the single discounts, find the net cost equivalents for...

Using complements (with respect to 1) of the single discounts, find the net cost equivalents for each of the following discounts. Do not round. 20. 18/15/5 21. 20/9 Find the net cost of each of the following list prices. Round to the nearest cent. 22. $979.20 less 18/10/12 23. $7.25 less 25/15

(b) Draw a diagram that shows a firm under perfect competition making a profit in the...

(b) Draw a diagram that shows a firm under perfect competition making a profit in the short run. How is price determined in this case? (c) Draw a diagram to illustrate the case of perfect competition where there is a negative production externality. Show how, if the production externality is ignored, output will differ compared to the alternative where society’s needs are taken into account. Explain briefly how a tax could be relevant in achieving the social optimum (a) Sketch...

Explain the following concepts (draw a graph if need) 1) Marginal benefit equal marginal cost in...

Explain the following concepts (draw a graph if need) 1) Marginal benefit equal marginal cost in competitive equilibrium. 2) Deadweight Loss, Economic surplus and economic efficiency 3) Government Intervention by way of a price floor and a price ceiling.

Subjects