A firm produces output y using two factors of production (Inputs), Labour L and capital K. The firm's production function is f(L,K) = 1/2 In(L)  + 1/2 In(K) . The wage rate w=4 and the rental price of capital r=4 are taken as parameters (fixed) by the firm. Solve the firm''s long run cost minimization problem (minimize costs subject to the output constraint ) to derive the firm's demand function for labour L = L(y) and for capital K =K(y) , and the firm's long run total cost function C=C(y)

Q: Suppose a firm produces according to the production function Q=3K/3L/3 and faces a wage rate of $5…

A: The Production function Q = 3K1/3L1/3 Wage rate(w) = $5 Rental rate of capital(r) = $2 Output price…

Q: Given the following cost function, determine the underlying production function. 1 2C(m, w, y) =…

A: The cost function shows the functional relationships between factors payments and outputs. It shows…

Q: Consider a firm that utilizes Labor (L) and Capital (K) to produce a product Q, and the technology…

A: Iso-quant curve show the different possible combinations of input that produces the same level of…

Q: A widget manufacturer has a production function of the form q= VLK. If the wage rate (w) is $4 and…

A: production function q=Lk,w=4 r=1returns to scorelet y=Lk=f(k,L)solving all factors of production by…

Q: a rational producer can produce after the point where Marginal product MP is less than zero, if the…

A: In economics, a rational consumer is one that make decision to maximize his utility using the given…

Q: A firm has a production function Q in function of K and L that can be written as follows: Q = 2/K/L…

A: Here, we have Production function,  Q=2KL or Q=2K0.5L0.5 Rental rate of a unit of capital is given…

Q: A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production…

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

Q: A firm's unit capital and labor costs are $1 and $2 respectively. If the production function is…

A: The maximum output of the production function can be determined by finding the marginal product of…

Q: a firm has the production function Q=min{2L,K}, find the cost function in the long run if wage is $2…

A: The provided production function is: Q=min{2L,K}

Q: Question 1 The total cost function of a firm is given by: 2 C = q(W){cv) Where q is total output, W…

A: Note: Since a student has asked more than one question, we are going to ask the first question as…

Q: A firm produces output that can be sold at a price of $10. The production function is given by Q =…

A: The production function is given below.

Q: Suppose that production for good X is characterized by the following production function, Q =…

A: In the short run, all factor of production are not variable. The at least one factor is fixed and…

Q: Assume a Cobb-Douglas production function in which the share of capital is a = 0.25 and the share of…

A: In production, if the rental cost of capital is more then the result will be that the capital that…

Q: A widget manufacturer has a production function of the form q = 6L + 10K . If the wage rate (w) is…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following statements is false? A firm’s costs are usually higher in the long run than…

A: Each firm has two types of cost, fixed cost and variable cost. In the long run there is only…

Q: Consider a competitive firm that has access to a technology described by the following production…

A:

Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…

A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…

Q: When a firm uses K units of capital and L units of labor, it can produce Q units of output with the…

A: Production function measures the relationship between the units of output produced by using the…

Q: Consider a manufacturing firm where total cost (TC) equals the product of the wage per worker in…

A: Introduction Here we have total cost and total revenue under perfect competition. Under perfect…

Q: Q = L1/2 K1/2 They have 16 units of capital (which is fixed in the short-run). The unit cost of…

A: The production function refers to the functional relationship between input and output, which…

Q: The short run production function is q = 10*L. The wage rate is $10 per unit of labor, then AVC:

A: AVC is total cost divided by output.

Q: The production function shows:   a. The level of output as a function of the quantity of inputs.…

A: The markets are considered to be place where the meeting, and interaction of the buyers of various…

Q: Let Q = F(K, L) = KL* denoted a production function with K as capital input and L as labour input.…

A: * SOLUTION :-

Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is…

A: Total Cost is the sum of fixed cost and variable cost. TC=FC+VC Fixed cost is that cost which is…

Q: Miguel and Jake run a paper company. Each week they need to produce 1,000 reams of paper to ship to…

A: Cost is minimized at the point where ratio of marginal product of inputs is equal to price ratio of…

Q: Consider the long-run cost minimisation problem, with L on the horizontal axis and K on the vertical…

A: A firm will minimise its cost at a point where marginal rate of technical substitution is equal to…

Q: For a competitive firm; production function, market price and unit costs for capital and labour are…

A: Given, Q(K,L) = K1/2L1/4 and p = 8, r =0.1 , w = 10 Input demand for Labor L = f (w,r,p) Input…

Q: A firm has the following production function: q = L - K Assume the firm must pay each unit of labor…

A: In the short run, capital is fixed but in the long run all inputs are variable.In the long run, cost…

Q: A firm has the following production function where q represents the output level per week, L…

A:

Q: firm has the following production function: q = 8KL, where q is the weekly output, K is the number…

A: Firm's production function: q = 8KL K=10 machines Every machine rents for $50,000 per week and every…

Q: A competitive firm produces its output, y according to the production function: y = F(K, L), where K…

A: The short-run profit function is equal to the revenue minus the total cost. The short-run supply…

Q: Suppose a firm’s production function is q= 2L+ 5K, the wage is w= 4, and the rental rate of capital…

A: Cost function is the total cost incurred to produce a good. It is the total sum of cost incurred on…

Q: Consider a profit-maximising firm with a production technology that can be represented by the…

A: Marginal product of labor(MPL) indicates the increment in output due to an additional unit of labor…

Q: A firm´s production function is given by: y = x² where y is the total output per time period, and x…

A:

Q: A competitive firm produces output using three fixed inputs and one variable input. The firm’s…

A: A competitive firm minimizes cost by employing the number of input where its marginal product is…

Q: A firm’s production function is  Q = L1/2 K1/2 They have 16 units of capital (which is fixed in the…

A: Given  Q =L1/2K1/2   ...... (1) In short-run  K = 16 (fixed) Cost of labour =2 and cost of capital =…

Q: A firm's production is given by f(L, K) =;min(3L, 2K), and it faces input prices w = $30/hr and r =…

A: Given  Production function: f(L,K)=16min(3L,2K)           ... (1) w= $30/hr r=$10/hr We have to…

Q: Consider a purely competitive firm that has two variable inputs L (labor hour) and K (machine) for…

A: We maximize the production function subject to the cost constraints. Cost=C=wL+rk Maximize:…

Q: firm has a Cobb-Douglas production function q = f(K, L) = KαL 1−α and faces wages, w, and rental…

A: Answer- "Thank you for submitting the question.But, we are authorized to solve only 3 subparts .For,…

Q: The Southern Mail produces local newspapers. The company can rent its equipment and hire workers at…

A: When the marginal cost of capital equals the marginal revenue productivity of capital, the capital…

Q: Suppose a firm with a production function given by Q = K0.4L0.6 produces 100 units of output. The…

A: The production function is as follows:- Q = K0.4L0.6 Production to be done is 100 units. Thus,…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

Q: The manager of Don Teeta Company Limited hires labour (L) and rents capital equipment (K) in a very…

A: The wage rate of labor (w) = GH¢2 per hour Capital is rented (r) = GH¢5 per hour, The unit price of…

Q: A competitive firm has a production function described as follows. Q = f(K, L) = 100K}L* where K and…

A: Since, the question has multiple sub parts, we will be answering the first three parts for you. If…

Q: A firm has the following production function, Q = Q(K,L) = K²+L², where Q is output, and K (capital)…

A: Firm gets maximum profit with use of  optimal level of input where the condition  Of MRTS = factor…

Q: What is the cheapest way of producing 850 units of output if a firm operates with the production…

A: It is given that;

Q: Your firm has determined they use the following production function: q = E°K Assume the current wage…

A:

Q: A firm has the following Cobb-Douglas production function:         q=(L^α)(K^1-α) 0<α < 1 is a…

A: Production Function: q = LαK1-α In the short run, K = 1. Therefore: q = Lα⇒L = q1α Total Cost: TC =…