11. A firm has a production function of Y $100 Log(K), where K is the amount of capital used in production. The slope of the production function is given by $100/K. Suppose the interest rate is 100%. What is the optimal level of capital? a. $1 b. $20 C. $50 d. $100 e. $200
Q: On his recent birthday on April 18, 2012, Cai was given by his mother a certain amount of money as b...
A: We have given that the rate of interest is 12% (exact simple interest) Date of maturity of the inves...
Q: You are given the information about production relationships between imagined country of "Wunderland...
A: Absolute Advantage is defined as the concept used to decide which country has a more superior produc...
Q: A manufacturer produces three products A, B and C which he sells in two markets. Annual sales volume...
A:
Q: A monopoly is designing two take-it-or-leave-it contracts of the form (gi, ri) for two consumer type...
A: Marginal Utility refers to the utility that a consumer or individual derives from the consumption of...
Q: b2 b1 4,20 10,2 a1 9,14 6,28 a2 1-п-о 12,4 8,6 a3 1-T The Equilibrium Existence Theorem guarantees t...
A: Mixed strategy games are those in which players choose any strategy based on a probability distribut...
Q: Briefly distinguish the specific tax and Ad Valorem tax?
A: Taxes are primary source of income for the government.
Q: The economy of Northhurst is currently experiencing GDP growth of over 7% with inflation rates of 4%...
A: Disclaimer: Since you have posted a multi-part question, I am providing you with the answer to the f...
Q: The diagram below shows an AD/AS model for a hypothetical economy which is initially in a short-run ...
A: When an economy produces products at a point where full employment and potential GDP are attained, a...
Q: Give an example of an Inelastic product, what makes it inelastic? What can make it become elastic?
A: Elasticity is a term used in business to describe the extent to which a change in a product's charac...
Q: . What if the Global Initiative for Mental Health is achieved?
A: 1. The health of populations in a global setting transcends specific country viewpoints and concerns...
Q: Air pollution creates a negative externality—a cost suffered by a third party as a result of an econ...
A: Externality is the negative or positive spillover by the consumer or producer which affects the thir...
Q: IHRM practices are sector-specific because a) Some sectors trade more in the alobal economy than oth...
A: When talking about international human resource management (IHRM) it is said that this management is...
Q: As the case of the refined petroleum market, MBp=90-0.3Q, MCp=30+0.1Q, marginal profit=60-0.4Q, marg...
A: Negative Externality is the coat of society because it reduces the wellbeing of society such as poll...
Q: What are the different type of strike a labor union can form?
A: Strike action, sometimes known as a labour strike is a work stoppage caused by a large number of emp...
Q: Which of the following economists is credited with developing the notion of "economic time?" Marbury...
A: An economist's involvement in development involves assessing statistics such as GDP and consumer con...
Q: Whichofthefollowingstatementsis(are)correct? (x) A payroll tax is a tax on the wages that a firm p...
A: A payroll tax is a tax that the firm levies on workers for social security purposes. It is directly ...
Q: Humanity is faced with a tough choice, work or leisure. Within the theory of consumer behaviour, app...
A: When the budget line intersects the indifference curve, consumer optimization happens. On the same i...
Q: There is no difference between the marginal rate of substitution and the ma Do you agree with this s...
A: The MRSxy implies the number of units of Y which are given up to get one additional unit of x. On ot...
Q: Suppose there are only two firms that sell smartphones, Flashfone and Pictech. The payoff matrix tha...
A: Given; 1) If Flashfone prices high, Pictech will make more profit if it chooses a low price. Reason...
Q: firm’s product b. Determine the profit-maximizing level of production and price. Quantity: ? Pric...
A: As subparts are more than 3, First 3 subparts are answered.
Q: In a perfectly competitive market you can expect the following changes to occur in long run if firms...
A: The structure of a market where there are a large number of sellers selling homogenous products and ...
Q: If the long-run average total cost is increasing as the output increases we call this: a. economies...
A: The costs that are being accumulated when the production level is being changed over time with respe...
Q: 7. When there is one scarce resource, the product that should be produced first is the product with ...
A: Scarce resource is the one that has a very limited amount of quantity available to use for consumpti...
Q: Consider the Solow Model of a closed economy where the aggregated capital, K, the aggregated labour ...
A: Introduction Aggregate production function has given as Y = K2/3 L2/3 F(K, L) = K2/3 L2/3 F( K/L , 1...
Q: A young entrepreneur, Adrianna, from Tobago manages two businesses – a bakery and a car rental. In a...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum pro...
A: Given Price of the product P=5000 per unit. Production capacity =360 units per year Currently produ...
Q: How did the COVID-19 pandemic affect the economic, social, and political aspect of the Transportatio...
A: Introduction Covid - 19 pandemic affects not only Philippines economy but it affects every economy v...
Q: Modern economics growth was made possible by
A: The definition's three components are all critical. Economic growth can be characterised as a long-t...
Q: An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P ...
A: Given that, First cost =P 250,000 Operation and maintenance=P 72,000 per year Taxes and insurance wi...
Q: Graphs of marginal revenue and marginal cost functions based on linear models for the demand and tot...
A: Marginal Cost is the additional cost incurred in the production of one more unit of output. Marginal...
Q: Jim's retirement account in a company currently totals $416,384. What perpetual income can Tom and h...
A: To begin receiving income as soon as a policy has been established, the annuity contract is called a...
Q: Describe the main assumptions of perfect competition and monopoly. please provide detailed answe...
A: Perfect competition can be described as a situation where there are large number of buyers and selle...
Q: Suppose the marginal propensity to consume (MPC) equals 0.75. An increase in autonomous investment ...
A: Given: MPC = 0.75 Autonomous Investment = $200
Q: Consider the two period consumption savings problem faced by an individual whose utility is defined ...
A: For the above question let us firstly derive the lifetime budget constraint : In period 1 : Budget C...
Q: Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new ...
A: The repeal of the investment tax credit will reduce corporate investment, causing demand for loanabl...
Q: Apart from being “control centers" and “focal points" of global capitalism, global cities also harbo...
A: global cities are confronting different issues: ● Environmental issues● Stressed properties● The iss...
Q: Consider the following example. The probability of a blender injuring a consumer during use is given...
A: The person under strict liability would choose precautions of the level at which the expected cost o...
Q: An important assumption in the AD/AS macro model is that when real GDP exceeds potential output, fac...
A: Aggregate demand or AD is the total demand of all the goods and services that are produced in the ec...
Q: Find the present value of $5000, due at the end of 4 years and 6 months, if money earns 4%, converte...
A: Compound interest refers to the interest that is paid on the principal. It gains interest in subsequ...
Q: Suppose the government offers investment tax credits to firms. In the market for loanable funds, the...
A: The interaction between the demand for loans and the supply of savings helps in determining the real...
Q: Express the equation of the budget line 4x + 5y - 300 = 0 in the: (i) intercept form and (ii) slope ...
A:
Q: Cailculac Carg's gntmal undleit Corl norrly price Bice, po hay nrice This is wunclle A shaw on cliag...
A: The consumption bundle is optimal when the following condition holds,MU1 / MU2 = P1 / P2Where, MU1 =...
Q: Select the incorrect statement/statements about the co−operative banks in US from the given choices,...
A: Answer: The correct option is: 1: Co –operative banks are small−sized units organized in the co−oper...
Q: What is Determinants of supply?
A: The quantity of a good or service that providers or producers are willing to sell in the market at a...
Q: GRAPH Reset Capital Goods Production Possibilities (Present) Production Possibilities (Future) 17 16...
A: Here, two production functions are given to represent current and future production of consumption a...
Q: You are given the information about production relationships between imagined country of "Wunderland...
A: Given Input per bushel of rice output Input per yard of cloth output Wunderland 75 100 Res...
Q: A company is considering the purchase of a generating set to supply the electrical needs of his offi...
A:
Q: A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M....
A: Given; Worth of chemical plant= P110M Estimated life= 6years Scrap value = P10M Cost of new plant= P...
Q: There are economists talking about the Phillips curve is a failure to predict the economy during the...
A: The concept of Phillips Curve was given by the famous economist A.W. Phillips. The curve shows the n...
Q: Please be brief and no more than 3 sentences are expected. 1. Why economic growth differs among coun...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
2
Step by step
Solved in 2 steps
- If a firm has 5 units of capital, 10 units of labor, and the production function is Q = 4L + 3K what is the average product of capital? 3 4 11 45Suppose a firm has the following production function: Y = A[ln K + ln L]. A is a variable representing the overall productivity of capital and labor. A profit maximizing firm will choose labor and capital so that their marginal products are equal to their marginal costs. Assume that the marginal cost of labor is the wage rate, w, and the marginal cost of capital is the real interest rate, r. a. Find the profit maximizing level of K and L for the firm. b. Does the firm use more or less capital and labor when productivity rises? (Show this mathematically and explain). c. Compute the second derivative with respect to K d. Compute the second derivative with respect to L e. If you were to graph the production function with K on the horizontal axis (and holding L fixed), would the graph be concave or convex? f. What is the partial cross derivative of this production function. Interpret the economic meaning of the result.1) In connection with the Law of the Minimum and the Law of Diminishing Returns, describe how the production function model can be a helpful tool in managing an agricultural production system.
- The equation below is a production function,Q = (200)L + (100)K – (0.2)L2 – (0.1)K2 , where Q is output, L is labor and K is capital. What is the Marginal Product of capital of this function? 200 - (0.4)L - (0.2)L 100 - (0.2)K - (0.1)KFirm ABC has estimated that it has the following production function: Q = 1.5LK – 0.3L2 – 0.15K2 Labor (L) has a price of €60 and capital (K) has a price of €75. ABC wants to maximize the production with a total cost of €2025. (a) Determine the quantities of labor and capital the firm should use. (round results to 2 decimal places) (b) What quantity of output will be produced at the optimal combination of factors of production?Suppose that the production function takes the form X = min(10L, 5K) and that a competitive firm faces a wage rate of £60 per week and a weekly capital rental of £32. (a) How much must the firm spend to produce 100 units of output, and what is the average cost of production when X = 100? (b) What is the incremental cost of producing the 101st unit of output? (c) What happens to the cost of producing 100 units of output if the wage rate and the rental cost of capital rise by 25 per cent each? What happens to the average and marginal cost? (d) What happens to the cost of producing 100 units of output if the wage rate increases by £1, or if the cost of capital increases by £1?
- Economics Suppose that production for good X is characterized by the following production function, Q = 4K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $12 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is Multiple Choice $6.25. $9.14.Correct $10.07. incalculable since there is insufficient information to determine the average total costs.Question 33 Consider a firm with production function f(L,K)=3L+8K. Assume that capital is fixed at K=12. Assume also that the price of capital r=10 and the price of labor w=3. Then, the average cost of producing q units is? AC(q)=24/q+1 AC(q)=114/q+9/8 AC(q)=24/q+3 AC(q)=88/q+1/12 AC(q)=24/q+qSuppose an automobile manufacturer is choosing between two production options. It can produce 100 cars with 200 workers and 50 machines, or it can produce 166 cars with 300 workers and 75 machines. Would you describe the manufacturer’s production function as exhibiting decreasing, constant, or increasing returns to scale? Explain.
- If a firm has 5 units of capital, 10 units of labor, and the production function is Q = 4L + 3K what is the Marginal product of capital? 3 4 11 45Please explain why the law of diminishing returns applies only in the short-term period.An electronics plant’s production function is Q = 5LK, where Q is its output rate, L is the amount of labor it uses per period of time and K is the amount of capital it uses per period of time. The Price of labor is $1 per unit of labor and the price of capital is $2 per unit of capital. a) What is the optimal combination of inputs the plant should use to produce 1000 units of output per period? b) Suppose that the price of labor increases to $2 per unit. What effect will this have on optimal L and K to produce Q=1000? c) Is this plant subject to decreasing returns to scale? Why or why not?