Ans) the correct option is c) TC3
Labor = 1000/200 = 5
Capital = 1000/100 = 10
So Y intercept and X intercept of total cost are 10 and 5 respectively.
A. TC1 B. TC2 C. TC3 D. TC4 Suppose a firm spends $1,000 per day producing...
Suppose a firm spends $1,000 per day producing scooters. The wage (w) rate per worker (L) is $200 per day and rental rate (r) per unit of capital (K) is $100 per day. The firm's isocost line at the current expenditure level is represented by: 20 19 TC1 18 17 16 15 14 13 12 11 K 10 TC3 9 8 7 6 5 4 3 TC4 TC2 TC1 у 10 TC3 8 7 6. 5 4 TC4 TC2 2...
A. L=25; K=16 B. L=40; K=10 C. L=16; K=25 D. L=10; K=40 E. L=20; K=20 = VE Lulu owns a firm that produces leggings. The production function is given by Q=2VKVL, so that MPL K and MPK = Q is Lulu's VL VK output, K is capital, L is labor, and MP is the marginal product. The wage (w)rate per worker (L) is $40 per day and rental rate (r) per unit of capital (K) is $10 per day. How...
dont need a big answer . Lulu owns a firm that produces leggings. The production function is given by Q = 2VKVL, so that MPL VK Vī VI and MPK Q is Lulu's VK output, K is capital, Lis labor, and MP is the marginal product. The wage (w) rate per worker (L) is $40 per day and rental rate (r) per unit of capital (K) is $10 per day. Lulu currently hires 4 workers and rents 9 machines to...
A. L=3; K=6 B. L=10; K=6 C. L=7; K=9 D. L=8; K=7 The graph below shows a firm's isoquants and isocosts. The firm is initially producing Q=20 with the cost minimizing combination of K and L, where Q is output, Kis capital and L is labor. Suppose the owner decides to expand production to Q=40. However, he signed a lease on the capital necessary to produce Q=20, which he cannot get out of in the short run. In order to...
The graph below shows a firm's isoquants and isocosts. The firm is initially producing Q-20 with the cost minimizing combination of K and L, where Q is output, Kis capital and Lis labor. Suppose the owner decides to expand production to Q=40. However, he signed a lease on the capital necessary to produce Q=20, which he cannot get out of in the short run. Are the short run total costs of producing Q-40 smaller or larger than the long run...
The graph below shows a firm's isoquants and isocosts. The firm is initially producing Q=20 with the cost minimizing combination of K and L, where Q is output, Kis capital and L is labor. Suppose the owner decides to expand production to Q=40. However, he signed a lease on the capital necessary to produce Q=20, which he cannot get out of in the short run. Are the short run total costs of producing Q=40 smaller or larger than the long...
Find the following using the table given below: (a) R2 (b) Standard Error for table (c) For both independent variables find coefficient value and the significance of the linear relationship with the dependent variable (d) Interpret the y-intercept of the table NOTE: Wage is dependent, and Education and Experience are Independent. Education Experience Wage 8 21 5.1 9 42 4.95 12 1 6.67 12 4 4 12 17 7.5 13 9 13.07 10 27 4.45 12 9 19.47 16 11...
Lulu currently hires 4 workers and rents 9 machines to produce 12 leggings. Is Lulu minimizing her costs? How do you know? Lulu owns a firm that produces leggings. The production function is given by Q = 2VKVL, so that MPL VK VI and MPk = VL Q is Lulu's VK output, K is capital, L is labor, and MP is the marginal product. The wage (w)rate per worker (L) is $40 per day and rental rate (r) per unit...
Suppose a certain firm is able to produce 160 units of output per day when 15 workers are hired. The firm is able to produce 176 units of output per day when 16 workers are hired (holding other inputs fixed). What is the marginal product of the 16th worker? Select one: a. 10 units of output b. 176 units of output c. 11 units of output d. 16 units of output
Suppose that a firm has a production function given by: ? = ?^?.???^?.? . The wage rate is $18 and the rental rate is $9. 12. Suppose that the firm has 4 units of capital in the short run. Find the short run total cost function. ________________________________ 13. Find the marginal product of labor (MPL) function. ________________________________ 14. Solve the optimization condition for K and write that equation. ________________________________ 15. Suppose the firm wants to minimize the cost of producing...