Homework Help is Here – Start Your Trial Now!
Business
Economics
5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. d. All of the above. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(EK)=K1/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)

5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. d. All of the above. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(EK)=K1/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter12: The American Labor Force
Section12.1: Amercians At Work
Problem 1R
See similar textbooks
icon
Related questions
Question
100%

Please help with questions 5-7

 

thank you 

MP and MRP, and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 Worker-Hours 0 1 23456789 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 c. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 MP (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6 c. 9 d. 2 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital)
Transcribed Image Text:MP and MRP, and Profit-Maximization Questions: If tacos sell for $2.50, and wage=$12.50, answer questions #1-#3 Worker-Hours 0 1 23456789 c. 7.5 d. 62 0 15 28 38 47 54 59 62 64 65 1. What is the MP of the 5th worker-hour? a. 10 b. 7 c. $2 d. $12.50 Tacos 2. What is the MRP of the 8th worker-hour? a. $5 b. $160 MP (Question #1) MRP (Question #2) 3. How many worker-hours should this firm employ to maximize profit? a. 5 b. 6 c. 9 d. 2 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital)
Inited States 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital) b. Q=f(Employment, Wage) c. Q=f(Revenue, Cost) d. Q=f(Price, Wage, Rental Rate of Capital) 5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. All of the above. d. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E,K)=K¹/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)
Transcribed Image Text:Inited States 4. Production Function General Form Question What is the general form of the production function, as discussed in class? a. Q=f(Employment, Capital) b. Q=f(Employment, Wage) c. Q=f(Revenue, Cost) d. Q=f(Price, Wage, Rental Rate of Capital) 5. Production Function Question: Why don't we care about production-maximization in the context of this course? a. There is no hard boundary to production-maximization. b. Maximizing production would simply demand E*=everyone, and K*=all of it. c. Without a cost function or any type of constraint, production-maximization is trivial. All of the above. d. 6. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E,K)=K¹/2E1/2, what is E*, the optimal level of labor? (numbers only, if the answer is "10 workers", type "10" ONLY, without quotations) 7. Profit Maximization by Choosing E* Suppose the hourly wage w=$25, the price of capital r=$20, and the price of output P=$100 in a perfectly competitive setting. Further, assume we are in the short run, and as such, capital is fixed at K=100 units. If the production function is Q=f(E.K)=K1/2E1/2, what is the optimal level of profits? (numbers only, if the answer is "$10", type "10" ONLY, without quotations)
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Derivative of Real Variable
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
SEE MORE TEXTBOOKS