HomeworkLib
Question

a firm produces output according to the production function Q=4K+8L where K is capital and L...

a firm produces output according to the production function Q=4K+8L where K is capital and L is labour. in this production function are capital and labour (a) perfect complements (b) perfect substitutes (c) imperfect substitutes or (d) perfect substitues as long as labour is less than 8 and perfect complements when labour is more than 8.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The given production function Q=4K+8L is one in which K and L are perfect substitutes.

The production function in which the function is Z=ax+by, then x and y are substitutes.

0 0
Add a comment
Know the answer?
Add Answer to:
a firm produces output according to the production function Q=4K+8L where K is capital and L...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Consider the following CES production function: Q= AlaL +1-a)K-]%, capital, respectively where Q is output and L and...

    Consider the following CES production function: Q= AlaL +1-a)K-]%, capital, respectively where Q is output and L and K are inputs labour and i) Interpret the parameters A,a,t and V ii) Show that if f-0, the two input Labour and capital are imperfect substitutes in production Consider the following CES production function: Q= AlaL +1-a)K-]%, capital, respectively where Q is output and L and K are inputs labour and i) Interpret the parameters A,a,t and V ii) Show that if...

  • A hamburger company produces hamburgers according to the production function Q = F(K,L) = 4K +...

    A hamburger company produces hamburgers according to the production function Q = F(K,L) = 4K + 8L. 2 a. How many hamburgers are produced when K = 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of hamburgers? c. How does your answer to part b change if the wage rate decreases to $20 per...

  • A firm produces output according to the production function: Q = F(K,L) = 2K + 2L....

    A firm produces output according to the production function: Q = F(K,L) = 2K + 2L. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $65 per hour and the rental rate on capital is $35 per hour, what is the cost-minimizing input mix for producing 4 units of output? Capital: Labor:

  • 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

  • A factory produces output (Q) using capital (K) and labor (L) according to the production function...

    A factory produces output (Q) using capital (K) and labor (L) according to the production function Y(K,L)=K1/5*L4/5 Let r denote the price per unit capital, and w denote the price per unit labor, so that the total expenditure on these factors is rK + wL. a) As the factory manager, you have been told to produce 625 units of output. Give the equation for the relevant isoquant, written with L as a function of K. b) If r = 80...

  • Specific Output Functions, Q = f(L,K): Below are some specific output functions. For each production function...

    Specific Output Functions, Q = f(L,K): Below are some specific output functions. For each production function (1) Explain how the firm uses the inputs capital (K), and labor (L): (2) Provide an illustration of the corresponding isoquants the preference yield - include three isoquants with unique levels of output; (3) Provide a general form of the production function and create two specific production functions; and (4) Calculate the MRTS Lx for each of your proposed production functions (if possible). (1)...

  • Suppose the linear production function is given by Q= 4K + 8L What is the marginal...

    Suppose the linear production function is given by Q= 4K + 8L What is the marginal product of capital when the firm uses 10 units of capital and 10 units of labor? What is the AP of labor if 3 units of capital and 5 units of labor are used?

  • A firm produces gizmos according to the production function Q =10KL , where Q is the...

    A firm produces gizmos according to the production function Q =10KL , where Q is the quantity of gismos produced, K is the quantity of capital rented and L is the quantity of labour hired. The manager has been given a production target: Produce 9,000 gizmos per day. He is informed that the daily rental price of capital is $400 per unit and the wage rate is $200 per day. a) Currently, the firm has 10 units of capital. How...

  • A firm has the following production function, where Q is output, K is capital and L...

    A firm has the following production function, where Q is output, K is capital and L is labor: Q = 400K0.5L0.3 Does this firm operate under increasing, decreasing or constant returns to scale, and why?

  • 9. A firm produces output according to a production function Q = F(K,L) min [2K,4L]. a....

    9. A firm produces output according to a production function Q = F(K,L) min [2K,4L]. a. How much output is produced when K-2 and L = 3? b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 4 units of output? How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT