



for a production function q = 3L + 5K, what's the long run labor demand, long...
What is the long-run cost function for a fixed-proportions production function when it takes five units of labor and four units of capital to produce one unit of output? Describe the long-run cost curve. Multiply the inputs by their prices and sum to determine total cost Let w be the cost of a unit of labor and r be the cost of a unit of capital. The long-run cost function C(q) for the fixed-proportions production function in terms of w,...
Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative numbers tell in terms of the amount of labor...
5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2 and w $3, what is the firm's cost function? 2q 5q 2K a. b. C. d. 3L 3L+ 2K e.
5. Suppose that your production function is q = K + L. If the firm is able to buy all the capital and labor it wants at r = $2...
1. A firm operates in the long run. Its long-run production function is given as: Q = LK, where Qis units of output, Lis units of labor, and K is units of capital. (a) Obtain six integer combinations of Land K when Q = 12. (b) Obtain six integer combinations of Land K when Q = 18. (c) Use the twelve integer combinations of Land K obtained in parts (a) and (b) to construct two isoquants on a two-dimensional plane....
8.13. A firm produces a product with labor and capital. Its production function is described by Q = L + K. The marginal products associated with this production function are MPL = 1 and MPK = 1. Let w= 1 and r = 1 be the prices of labor and capital, respectively. a) Find the equation for the firm's long-run total cost curve as a function of quantity Q when the prices labor and capital are w = 1 and...
A firm produces a product with labor and capital as inputs. The production function is described by Q = LK. The marginal products associated with this production function are MPL= K and MPK= L. Let w = 1 and r = 1 be the prices of labor and capital, respectively. a) Find the equation for the firm’s long-run total cost curve as a function of quantity Q. b) Solve the firm’s short-run cost-minimization problem when capital is fixed at a...
The production function of a firm is given as Q = 50√KL. Here Q is the output produced, K is the capital input and L is the labor input. a) Obtain the production function by using factor demand functions. b) Find the long run total cost function for this production function in terms of input prices and outputs. If the unit cost of labor is $ 25 and the rent cost of capital is $ 100, write the total cost...
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. Suppose the cost of a unit of capital is $2 (r=2), and the cost of a unit of labor is $4 (w=4). What is the short run total cost function in terms of Q? A. TC=4+Q B. TC=4+0.5Q C. TC=8+Q D. TC=8+0.5Q
suppose capital and labor are perfect substitute resulting in production function of q=k+l. derive the long run cost Tc=c(q) when the wage rate is w and rental rate is r
1. Por each of the following production functions (a and b) find the following equations (Hy in terms of Qow and li) MRZSK D) Long-run capital and Tabor demand curve iii) Long-run total cost curve iv) Short-run capital and labor demand curve if the firm is stuck with R = 9 v) Short-run total cost if the firm is stuck with K – 9. (a) Q-12VKA (b) Q=LK +6L 1.2. Meals must be produced with 5 chefs and 2 ovens...