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13 Question (5 points) K3L3 is a good approximation of actual An economic analysis of the...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
A firm has a production function q = KL, where q is the quantity of output,...
A firm has a production function q = KL, where q is the quantity of output, K is the amount of capital and L is the amount of labor. a) Does this production function exhibit increasing, decreasing or constant returns to scale? b) Does the long-run cost function exhibit economies of scale or diseconomies of scale? c) Is the LR Average Cost curve increasing or decreasing with q?
5. Margarita's robotics has a daily production function given by O=K0.31 0.7 where K is the...
5. Margarita's robotics has a daily production function given by O=K0.31 0.7 where K is the monthly number of hours of use for a precision lathe (capital) and 1 is the monthly number of machinist hours (labor). Suppose each unit of capital costs $40 and each unit of labor costs $10. a. In the short run, K is fixed at 1,000 hours. What is the short run demand for labor. b. Given that K is fixed at 1,000 hours, what...
These two question please Question 8 (1 point) When do constant returns to scale occur? when...
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
the second question In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4)...
the second question
In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4) Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing (Round responses to two decimal places.) The MPK at 5 units of capital is 156.12 The MP at 6 units of capital is 144.02 The MP at 50 units of labor is 8.84 The MP...
5. (20 points) An entrepreneur purchases two factories to produce frisbees. Each factory produces...
5. (20 points) An entrepreneur purchases two factories to produce frisbees. Each factory produces identical products, and each has a production function given by: he factories differ, however, in the amount of capital equipment each has. Factory 1 has K1-25 and factory 2 has K2 -100. The wage rate and the rental rate for capital are givern If the entrepreneur wishes to minimize short-run total costs of frisbee production, how should output be allocated between the two factories? Please explain...
A company A can produce widgets according to Q=5K3/4L1/4 where Q is the output of widgets,...
A company A can produce widgets according to Q=5K3/4L1/4 where Q is the output of widgets, and K, L are quantities of capital and labor used. Are there constant, increasing or decreasing returns to scale in widget production? Explain. Are there, constant, increasing or decreasing marginal products of factors? Explain In the short run, the amount of capital used by company A. is fixed. Derive the short-run cost function. (Note that the short-run cost function will show C as a...
3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ???...
3) Consider the production function ? = 6? 0.3? 0.6 . The marginal products are ??? = 1.8? −0.7? 0.6 and ??? = 3.6? 0.3? −0.4 . a. In the short run assume that capital is fixed at ? = 10. Derive formulas for the short-run Total Product (TP), Average Product (APL), and Marginal Product (MPL). Graph these three functions. b. In the long run, capital is not fixed. Graph the isoquant for ? = 6. Identify and label three...
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function...
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function of the form: q = 5LK+K+L where q is units per day, L is units of labor input and K is units of capital output. The marginal product of the two inputs are: MPL = 5K+1, MPK = 5L +1. Price per unit of labor: w= $15, price per unit of capital: v= $15. Both labor and capital are variable. a. Write down the...
Please solve the above sum (c) ()The average product of labour when three workers farm an acre of land is 150 bushels of wheat and the marginal product. when fourth worker is employed. is 75 bushe...
Please solve the above sum
(c) ()The average product of labour when three workers farm an acre of land is 150 bushels of wheat and the marginal product. when fourth worker is employed. is 75 bushels. What is the total output with four workers? (i) What is the minimum efficient scale of production in long-run average cost? (i) Determine whether the following production functions exhibit increasing, decreasing or constant returns to scale: Q = 300K + 25L 2+2+2
(c) ()The...
Question 3 Long-run average total cost (LAC) O a represents the lowest average cost of producing a given level of output. b. is always equal to or greater than short-run average total cost. c. can be measured in the short-run. If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then a long-run marginal cost is at its minimum point b. long run average cost is at its minimum point. c long...
5. Margarita's robotics has a daily production function given by O=K0.31 0.7 where K is the monthly number of hours of use for a precision lathe (capital) and 1 is the monthly number of machinist hours (labor). Suppose each unit of capital costs $40 and each unit of labor costs $10. a. In the short run, K is fixed at 1,000 hours. What is the short run demand for labor. b. Given that K is fixed at 1,000 hours, what...
These two question please
Question 8 (1 point) When do constant returns to scale occur? when long-run total costs are constant as output increases when long-run average total costs are constant as output increases when the firm's long-run average-cost curve is falling as output increases when the firm's long-run average-cost curve is rising as output increases Figure 13-4 The curves in this figure reflect information about the average total cost, average fixed cost, average variable cost, and marginal cost for...
the second question
In Example 6.4 wheat is produced according to the production function: q=100(k0.6 0.4) Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing (Round responses to two decimal places.) The MPK at 5 units of capital is 156.12 The MP at 6 units of capital is 144.02 The MP at 50 units of labor is 8.84 The MP...
5. (20 points) An entrepreneur purchases two factories to produce frisbees. Each factory produces identical products, and each has a production function given by: he factories differ, however, in the amount of capital equipment each has. Factory 1 has K1-25 and factory 2 has K2 -100. The wage rate and the rental rate for capital are givern If the entrepreneur wishes to minimize short-run total costs of frisbee production, how should output be allocated between the two factories? Please explain...
Part 2: Short answer questions Question 1 (4 points): A sausage firm has a production function of the form: q = 5LK+K+L where q is units per day, L is units of labor input and K is units of capital output. The marginal product of the two inputs are: MPL = 5K+1, MPK = 5L +1. Price per unit of labor: w= $15, price per unit of capital: v= $15. Both labor and capital are variable. a. Write down the...
Please solve the above sum
(c) ()The average product of labour when three workers farm an acre of land is 150 bushels of wheat and the marginal product. when fourth worker is employed. is 75 bushels. What is the total output with four workers? (i) What is the minimum efficient scale of production in long-run average cost? (i) Determine whether the following production functions exhibit increasing, decreasing or constant returns to scale: Q = 300K + 25L 2+2+2
(c) ()The...
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