Question 13 q=f(n, k) is a short run production function of a representative medical firm. k...

Question

Question

Question 13 q=f(n, k) is a short run production function of a representative medical firm. k stands for a fixed amount of cap

business economics

Answer 1

Answer #1

Answer is option b

None of the choices is correct as none of the option is able to answer WHY..

In short run we can change only one factor that is labour but capital is fixed as it can not be changed in short run time period.

Answer 2

Similar Homework Help Questions

Question 7 (1 point) Suppose a firm has the production function: Q = 2KL, where K...

Question 7 (1 point) Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor and Q is quantity. If capital is fixed at 4 in the short run. What is the short run production function? Q=2L Q=8L Q=2K Q=8K
1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L?...

1. Imagine a firm has the following short-run production function: q=f(L,K) = K L – L? Assume K = 25. a. Fill in the following table. (First, find the total output from the production function, then find the marginal product by dividing the change in total output by change in labor.) Capital MPL Labor 7 Total Output 126 APL 18 25 12 25 25 25 25 25 10 11 12 13 14 15 25 25 25 b. How many units...
5. A firm produces widgets with production function: q-2vKL. In the short run, the firm's amount...

5. A firm produces widgets with production function: q-2vKL. In the short run, the firm's amount of capital is fixed at K = 100. The rental rate is v = 1 and the wage for L is w= 4. (a) Find the firm's short-run total cost curve (SRTC), short-run average cost curve (SRAC), and the short-run marginal cost (SMC) function. (b) Graph the firm's SAC and SMC using the following levels of production: q 25 and q= 100. (c) Find...

Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and...

Suppose a firm has the production function: Q=2KL, where K is capital, L is labor and Q is quantity. If capital is fixed at 4 in the short run. What is the short run production function? A. Q=2L B. Q=8L C. Q=2K D. Q=8K
Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor...

Suppose a firm has the production function: Q = 2KL, where K is capital, Lis labor and Q is quantity. If capital is fixed at 4 in the short run. Suppose the cost of a unit of capital is $1 (r=1), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? OTC = 8+Q OTC = 8+0.5Q OTC = 4+ 0.5Q OTC = 4+Q Question 9 (1...
Consider a firm using two inputs; capital (K) and labor (L) in production. The firm's production...

Consider a firm using two inputs; capital (K) and labor (L) in production. The firm's production technology is characterized by the following production function: Q = F(K, L) = 40K L In the short run (SR), the quantity of the capital (K) that the firm uses is fixed at K = 10 whereas the quantity of the labor input can be varied. Price of labor is $4,000 per worker and the price of capital is $2,000 per capital. (PL=$4,000 and...

A firm producing hockey sticks has a production function given by . In the short run,...

A firm producing hockey sticks has a production function given by . In the short run, the firm's amount of capital equipment is fixed at K = 100. The rental rate for K is $1 and the wage rate for L is $4. a. What is the firm's fixed rate cost? b. What is the firm's total cost function, TC(Q)? 2LK
1. The production function of a firm is f(1,k) = Vlk where l is labor and...

1. The production function of a firm is f(1,k) = Vlk where l is labor and k is capital/machinery. a. In the short run, if the quantity of capital is fixed at 64, derive the short run total cost SC(q), average cost SAC(q), and marginal cost SMC(q) of this firm. Assume each input costs $1 per unit. At what output does the minimum of SAC(q) occur? b. If labor and capital cost r and w respectively, and the quantity of...
Suppose that a firm uses a production function Q = 0.5K + 12L, where Q is...

Suppose that a firm uses a production function Q = 0.5K + 12L, where Q is output, and K and L are inputs. In the short-run, K is fixed at 20 units. If the firm needs exactly 74 units of Q, how much L should it hire? 5.33 6.66 11.5 13.5

Suppose the production function for a firm is given by: q=5L0.5K0.25. In the short run, the...

Suppose the production function for a firm is given by: q=5L0.5K0.25. In the short run, the firm has 256 units of capital. Find the Marginal Product of Labor (MPL). Fill in the appropriate numbers in the function below. MPL = ( ) L-0.5