a) A highly skilled worker can use two scissors at once in his left and right hands with a production of 75 kg per hour. Draw the wine production isoquants for Q1 = 500, Q2 = 1000, Q3 = 1,500. show the most optimal position ?. %3D %3D
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- Given production function:Q=L3/4.K1/4Find out the optimal quantities of the two factors using Lagrangian method, if it is given that price of labor is Rs.6 and price of capital is Rs.3 and total cost is equal to Rs.120.Suppose the input combination currently used by a producer is such that the TRS is equal (in absolute value) to the ratio of the input prices. Then, we can conclude that the producer is maximizing her profits. Group of answer choices True FalseA Vietnamese restaurant in Port-of-Spain decides to use a part of its dining hall to sell Vietnamese grocery items. How do you classify this expansion? a.None of these other available answer choices is b.Economies of scale c.Diseconomies of scope d.Economies of scope e.Economies of scale
- If a firm is using optimal input proportions, it is minimizing its costs. True FalseAll of these statements about the production function are true EXCEPT a) the curve features 3 distinct regions: increasing returns to scale, constant returns to scale, and diminishing returns to scale. b)the curve's shape matches and its description of the interaction between the graph's axes represents the law of diminishing returns c) it can be applied to many economic markets d) one variation is used to show the difference between firm and market specific riskSuppose that there is a firm that produces chairs and the firm receives an order for 80 chairs. The firm has two resources available to it. The first is a (human) worker, who must be paid $18 for each hour they spend producing chairs. The second is a robot, that costs $15 of inputs (including electricity and maintenance) for each hour it works. Chairs produced by either method are identical and of equivalent quality. Assume that the use of these two inputs is completely independent. This means that the number of hours of robot-work does not affect the productivity of the worker, and vice versa. The production of chairs based upon the numbers of hours of each of the inputs used is given below. For example, 2 hours of robot time will produce 10 chairs. 7 hours of worker time will produce 54 chairs. Please use the image provided to answer the following: 1) Do any of the inputs in this example exhibit diminishing returns to scale? If so, which and how do you know? If not, how do you…
- For the typical Cobb-douglas function, q=AKaLb whereas APL / APK = 1 , find out the marginal rate of technical substitution.The chemical X-2000 is produced using two inputs, benzene (B) and labor (L) in the exact proportions of one gallon of benzene for each two hours of labor services. Firms in the industry have the production function: qX = min[B, 0.5L] The production of X-2000 generates fumes that greatly increase the chance of cancer among workers. The workers would suffer no ill health effects if they were provided with masks containing a filtering system. The masks increase the hourly cost of labor by another $2. Suppose that in response to this health hazard, the government enacts a regulation that requires the firm to provide each worker with a mask. f) Do you think the new regulation will affect the firm’s choice of input levels (i.e. the firm’s cheapest technique) for a given level of output? g) How will the new regulation affect the firm’s total and marginal cost functions?From a certain place K, 2000 people set off for work in the distant place S in the morning by car. Each of the drivers must decide whether to come to place S via point G or via point D (see the directed graph below). The travel time on segments G-S and K-D is not dependent on the number of drivers: each driver traverses the G-S segment in 60 minutes, and the K-D segment in 45 minutes, regardless of the number of drivers. However, the travel time on segments K-G and D-S depends on the number of drivers: if x drivers travel on the K-G segment, each driver on this segment consumes 0.005x minutes; if x drivers travel on the D-S segment, each driver on this segment consumes 0.01x minutes (see the directed graph below). Assume that all people start simultaneously and do not know the decisions of other people. Find all pure Nash equilibria of the game.
- With a production function of Q = L + 2K if r = $4 and w = $4, how many units of capital and labor will be optimally utilized? All K and no L. All L and no K. Equal amounts of K and L. A combination of K and L not represented above.Q.2 Determine the values of K and L which minimise the cost function C = 3K + 5L subject to the production constraint, 250 = 10K0.5L0.5.Rex Carr owns a junkyard which processes used cars into scrap metal. In the long-run Rex can use two methods to destroy cars. The first involves purchasing a hydraulic car smasher which costs $200 a year to own and then spending $1 for every car smashed. The second method involves purchasing a hammer that will last one year and costs $40, and paying his brother Otto Carr to destroy the cars at a cost of $5 each. What is the minimum number of cars processed per year for which Rex should be willing to purchase the hydraulic smasher?
