A firm produces output with the production function, Q = F(K, L) = K0.5L0.5 with r=4 and w= 2. The firm is using K=16 and just enough L to produce 16 units of output in the short run. How much could the firm save if it were producing 16 units in the long run?

Q: None of the answer choices are correct. Empirical research finds little evidence to support the use…

A: A place where someone works, whether for oneself or for an employer, is referred to as a workplace.…

Q: The marginal revenue (in thousands of dollars) from the sale of x handheld gaming devices is given…

A: The total revenue function, denoted by far the most typical revenue function formula. Also known as…

Q: You are a manager at a hotel in a popular tourist destination. Assume that the market for hotel…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: = Two firms sell substitutable products; the market price is: P = 90 - Q, where Q Q₁ + Q₂ is the…

A:

Q: As in the lemons model, suppose that there is one seller and one buyer who may exchange a good of…

A: Lemon model: 1 seller, 1 buyer Value of good for seller = v Value of good for buyer = 3v/2 Fixed…

Q: For each of the production functions below, find the marginal products of both inputs, and indicate…

A: Note:  “Since you have posted multiple questions, we will provide the solution only to the first…

Q: Does an aging population increase or decrease LRAS??? that is the question. please answer

A: An AS curve means to a graph that display how the changes in the total supply of goods and services…

Q: If the inverse demand curve is p = 150-3Q and the marginal cost is constant at $12, how does…

A: Given  Inverse demand function: p=150-3Q            ....(1) The marginal cost of a monopoly firm…

Q: 5. The National Park Service is considering two plans for rejuvenating the forest and landscape of a…

A: Capitalized value method where the value of a property that produces income is reflected in the…

Q: Jorge is trying to decide what to eat. If Jorge has $14 to spend, what combination of goods should…

A: The consumer tries to maximize its utility by utilizing all resources (i.e. income). To maximize its…

Q: Player 1 Cooperate (C) Defect (D) Cooperate (C) 3,3 8,0 Player 2 Defect (D) 0,8 1,1 In general, a…

A: A combination of strategies is Nash equilibrium if the each of the player chooses the best strategy…

Q: (d) Will the loss in consumer and producer surplus be greater than, less than, or equal to the tax…

A: Imposition of tax shifts the supply curve to the upward and government received tax revenue by…

Q: If the number of employed people equals 185 million, the number of unemployed people equals 15…

A: The labour force participation rates is calculated as the labour force divided by the total…

Q: Year 2022 2023 Potential Real GDP $18.1 trillion 18.4 trillion Real GDP $18.1 trillion 18.6 trillion…

A: Monetary policy: Monetary policy refers to the macroeconomic strategy of the central bank. The…

Q: Hope is offered the choice between either taking $10 or flipping a coin. If the coin shows heads,…

A: The phrase "risk" refers to the possibility that the actual benefits made from an event or…

Q: A risk neutral insurer offers to insure an individual with a wealth of 25 dollars against a loss of…

A: Initial wealth=25 Loss=21 For A-- Loss probability=0.33 and no loss=0.66 For B --- loss…

Q: The table shows the demand and supply schedules for running shoes. Complete the following sentences.…

A: The situation of equilibrium is determined by finding out the quantity demanded and supplied of the…

Q: · α Each week, an individual consumes x and y of two goods, and works for 1 hours. These three…

A: Given, Utility Function: U(x,y,l)=αln(x)+βln(y)+(1-α-β)ln(L-1) Defined for 0≤l≤L and x,y>0 and,…

Q: Price discrimination creates economic inefficiency. False True True, if the firm is a monopolist,…

A: Price discrimination is charging different prices for the same goods and services. The seller of the…

Q: The price of the product is $4. If the wage rate is $8.00 per hour, the profit- maximizing number of…

A: Marginal Revenue Product of the Labor is the additional revenue earned due to the employment of an…

Q: A machine costs $20,200 and has a 5-year useful life. At the end of the 5 years, it can be sold for…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: he graph above reflects the market for rice in Spain. Suppose that the free trade price is 00euros,…

A: A country is an exporter when it’s Demand is greater than its supply . A country is an importer when…

Q: What is the Pareto optimal outcome? (Firm A is the left value in each pair, Firm B is the right…

A: Pareto optimal outcome is the state where no more changes is expected as this outcome is the best…

Q: (1) Year 1980 1985 1990 2000 2005 2009 a. $2686.9 Based on the above information, what is real GDP…

A: Real GDP is the GDP in base year price.  Real GDP does not include inflation Nominal GDP includes…

Q: How Cournot and Stackelberg models are different? In Cournot profits are zero and in Stackelberg…

A: Cournot competition refers to an economic model in which competing enterprises determine a quantity…

Q: Please answer in detail   A corner solution exists when a consumer spends all of her or his income…

A: The utility maximization or minimization problem reaches to corner solution when the chooser is…

Q: Suppose rr = required reserve ratio = 0.1 C = currency in circulation = $1,200 billion D = checkable…

A: deposits is the amount a savers deposit in the bank in order to protect and earn some interest rate…

Q: Refer to the following graph. Tax revenue C Tax rate

A: The above graph highlights the relationship between tax revenue and tax rate. The revenue will be…

Q: If the NII increase by $6,000, caused by a 2% decrease in Interest Rates. According to Dollar Gap…

A: A bank's net interest income (NII) is the difference between the interest payments made on its…

Q: Suppose the game tree instead looks as follows R&D No R&D E No R&D &&D (0, 20). (10, 5). (10, 10).…

A: Here, a game between two players I and E is represented. This is a sequential move game. The initial…

Q: According to the Keynesian cross model if the marginal propensity to consume is 2/3, cut in taxes of…

A: Tax multiplier is given by the formula :-  Tax multiplier = -MPC / ( 1 - MPC)  MPC is the marginal…

Q: If $4000 is taxed from the top earner and transferred to the lowest earner, would that increase or…

A: Introduction Depending on the overall economic levels of a nation, the definition of poverty may…

Q: Suppose that there are two markets; an agricultural products market and a water firm that is and the…

A: Consumer surplus is the monetary benefit that consumers receive when they pay a price lower than…

Q: he utility function is U(x1, x2)= 3ln (x1)+ 5x2, the prices are p1 and p2, and income is y. Derive…

A: Utility function shows the relationship between the utility and consumption of goods x1 and x2.…

Q: Consider Exhibit 8-6. At which price will this firm shut-down? OA. P₁ B. P2 OC. P3 OD. P₂ or P3 OE.…

A: Shut down refers to a situation in the short run when the firm temporarily closes its production…

Q: The Crude Version of the Quantity Theory of Money assumes:     A. Flexible Prices   B. Flexible…

A: As per quantity theory of money, M*V = P*Q where M is the money supply' V is the velocity of money…

Q: 7. Briefly explain the impact of the following on Zambia's exchange rate: a) A fall in inflation. b)…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Explain the difference between capitalism and socialism.

A: The different laws and ordinances that comprise the economy are referred to as its economic system.…

Q: which of the following is true about supply-side economic policies a) tax cuts tend to almost…

A: Supply-side economics is a macroeconomic theory which states that increase in supply of goods leads…

Q: Look at the figure. The profit-maximizing level of output is Price and cost ZOP N Q 222 ✔ MC MR RSTU…

A: The profit maximization level of output is when the marginal revenue (MR) is equal to the marginal…

Q: L (workers) 0 1 2 3 4 5 6 7 Q (units) 0 90 210 320 420 510 590 660 MPL FC (units) (S) greater than…

A: Cost refers to the value of money that a business had to expend to manufacture its goods or…

Q: 2. Spectral provides internet services in Winnebago. The production function for Spectral is given…

A:

Q: Suppose a firm’s long-run total cost (LTC) curve is given LTC=2Q3-12Q2+20Q, and the long-run…

A: supply curve is the upward sloping curve which shows positive relationship between price and…

Q: Sofia has set aside $50 to spend on DVDs and movie tickets. The table shows Sofia's marginal utility…

A: Marginal utility refers to the additional utility enjoyed by a consumer due to consumption of an…

Q: A market failure in banking occurs if: Information asymmetry exists between the borrower and the…

A: Investment is the payment that is guided into the international market to be paid today for future…

Q: Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 10…

A: "Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: Suppose in the long-rung the production function of a competitive firm is Q=f(L,K)= L¹/5K¹/2, where…

A:

Q: b) National Homebuilders, Inc., plans to purchase new cut-and-finish equipment. The details of the 2…

A: Annual worth formula: Equal payment series capital recovery factor (A/P,i,n):…

Q: Can affirmative action policies use quotas? What are the political and economic beliefs of Thomas…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: 1. Labor Markets (a) Sketch a graph of a competitive labor market for fast food workers, showing a…

A: The supply curve for labor in fast food market will be upward sloped .It means  more workers will be…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.