Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

Question

Question

Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

Suppose in the short run a firm’s production function is given by Q = L^1/²*K^1/2, and that K is fixed at K = 49. If the price of Labor, w = $6 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 28 units of output?

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Add a comment

Answer 2

Similar Homework Help Questions

Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and that K is fixed at K = 36. If the price of Labor, w = $12 per unit of Labor, what is the firm’s Marginal Cost of production when the firm is producing 48 units of output? MC = ________________________
Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor...

Suppose a firm’s production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = ½ L-1/2K1/2and MPK = ½ L1/2K-1/2 a) Suppose the price of labor is w = 18, and the price of capital is r = 2. Derive the firm’s total cost function. b) What is the firm’s marginal cost? c) For this problem, you will sketch the graph of the firm’s isoquant for Q...
5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate...

5. Suppose a firm has the production function Q = K1/2 L1/4 M1/4 The wage rate w = 16 , rental rate r = 2 , and the price of the materials m = 1. 1) Suppose in the short run, K is fixed at K *. What’s the solution to the firm’s short run cost-minimization problem? 2) What is the solution to the firm’s long run cost minimization problem given that the firm wants to produce Q units of...

Suppose a firm has a production function given by Q = L1/2 K1/2. Therefore, MPL = K1/2 / 2L1/2 and MPK = L1/2 / 2K1/2 Th...

Suppose a firm has a production function given by Q = L1/2 K1/2. Therefore, MPL = K1/2 / 2L1/2 and MPK = L1/2 / 2K1/2 The firm can purchase labor, L at a price w = 36, and capital, K at a price of r = 9. a) What is the firm’s Total Cost function, TC(Q)? b) What is the firm’s marginal cost of production?
[Short-Run Production] Suppose that a firm is producing in the short run with output given by:...

[Short-Run Production] Suppose that a firm is producing in the short run with output given by: Q = 200.5L – 2.5L2, The firm hires labor at a wage of $25 per hour and sells the good in a competitive market at P = $50 per unit. Find the firm’s optimal use of labor and associated level of output. (For extra practice, what is the firm’s associated profit?) I have already finished and went to check my work on Chegg and...
A firm has the production function F(L, K) = L1/2 + K1/2. The price of labor...

A firm has the production function F(L, K) = L1/2 + K1/2. The price of labor is $30 and the price of capital is $10. The firm has a production goal of 100 units of output. a) Carefully write out this firm’s cost minimization problem, using the particulars of this problem. b) Give two equations—particular to this problem—that the solution satisfies. c) Solve for the firm’s optimal input bundle. d) Determine the firm’s cost of producing 100 units of output....

A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of units...

A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of units of output produced, l the number of units of labor input used and k the number of units of capital input used. In the short-run the firm’s amount of capital is fixed at k1 = 100. When l = 25, the firm’s marginal product of labor is [MPl].
. Suppose the production function of a firm is given by q = L1/4K2/4. The prices of labor and cap...

. Suppose the production function of a firm is given by q = L1/4K2/4. The prices of labor and capital are given by and w = $9 and r = $18, respectively. Derive the long run cost function. Show your work. What happens to the firm’s average cost as it increases production and why? Derive the firm’s long run supply function. What will be the quantity of output that maximizes the firm’s profit when the price of output is $1?...
2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit...

2. Suppose that a firm’s production function is Q = 10 L½ K½ and the unit cost of labor is $20, capital is $80, and the product price is $12 per unit. The firm is currently producing 100 units of output and has determined that its cost minimizing quantities of labor and capital usage for this level of output is 20 and 5 respectively. The product price is $12 per unit. a. Determine the current total cost for 100 units,...

5. Suppose a firm has the production function Q=K1/2 [4M1/4 The wage rate w=16, rental rate...

5. Suppose a firm has the production function Q=K1/2 [4M1/4 The wage rate w=16, rental rate r=2, and the price of the materials m=1. 1) Suppose in the short run, K is fixed at K*. What's the solution to the firm's short run cost-minimization problem? 2) What is the solution to the firm's long run cost minimization problem given that the firm wants to produce Q units of output? 3) Suppose that Q = 10,K* = 20. Compare the long...

Suppose in the short run a firm’s production function is given by Q = L1/2*K1/2, and...

Homework Answers