A widget manufacturer has a production function of the form q = 6L + 10K . If the wage rate (w) is $4 and the rental rate on capital (r) is $5. Are the returns to scale increasing, constant, or decreasing for this production function?

Q: machines (K). The quantity of products produced in a month is given by the function Q = 3KL. Each…

A: Q = 3KL Fixed Cost = 15,000 Variable Cost = 5000

Q: Suppose the hourly wage is $20 and the price of each unit of capital is $2. The price of output is…

A: The firm maximizes profit by hiring the number of workers at a point where MPE = w/p

Q: Suppose the firm short run production function is a quadratic one in the form: Q = 2L+ 0.25 L2, the…

A: In the short run profit maximizing condition is that where MPN = W/P which means the firm will hire…

Q: To maximise profits, a competitive firm has a cost function, C(q) = 4q2 + 95 and produces 33 units…

A: The profit is maximized where the P=MC.

Q: A soap manufacturer has the production function q = LK² and faces a wage rate of $45 and rental rate…

A: We know,  q=LK2  w=$45 r-$90

Q: The production function for a firm is q=−0.6L^3+18L^2 K+10L where q is the amount of output, L is…

A: The average product of labor is the total product of labor divided by the number of units of labor…

Q: Suppose the short-run production function is q = 11L². Suppose that the wage rate is $112 per unit…

A: The firm produces goods and services which would result in the minimisation of the cost.with the…

Q: Quantity of variable input Total output Marginal product of variable input Average product of…

A: In the process of production , we usually observe the law of diminishing marginal returns. The…

Q: Consider a production function of two inputs, labor and capital given by Q=LK. Let w =5 and r = 1,…

A: Production function refers to the function which shows the relationship between the final output and…

Q: Given prices for the two inputs as w1 = 1, w2 = 2, find the cost function of the (attached)…

A: Answer to the question is as follows:

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: Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero.…

A: So  FC=$6 VC=7×$10       =$70

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: Consider the production function f (x1, x2)=min{x1, x2}. Assume the price of the inputs are w1 and…

A: Production: It refers to the making of goods and services in the market. The more production would…

Q: Suppose a firm’s conditional factor demand functions (the inputs needed to produce q at minimum…

A: Given, A firm’s conditional factor demand functions for labor is given below: L = L(w, q, r) = 4rq…

Q: a producer faces a fixed cost Rs 50 and a variable cost of RS 5 per unit of output when he produces…

A: Answer: Given, Fixed cost = Rs 50 Variable cost = Rs 5 per unit of output (for output level below…

Q: > Consider this total product function with a single variable input, labor (L) per day: TPL = Q(L) =…

A: Total Product refers to the sum of all the products whether goods or services that are produced by a…

Q: Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1…

A: The interplay between the output that a process gives and the various inputs that go in the process…

Q: Given Q = AK" LP; Qo = 2,000, A = 100, a = 0.6, p = 0.8, w = 50, r = 80 A. Does this production…

A: The technical relationship b/w the quantities of physical inputs and quantities of products output…

Q: A firm produces output y using two factors of production (Inputs), Labour L and capital K. The…

A: PRODUCTION FUNCTION -:                                                         It refers to…

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: R 12-2 A Japanese synthetic rubber manufacturer's production function is q = 10-L05 K Suppose that…

A: q=10L0.5K0.5 -----------------1 w=$11  r=$44 MPL = 5*K0.5L-0.5  MPK = 5*L0.5K-0.5

Q: Suppose a firm faces the input prices of labor and capital of w = $15 and r = $2, respectively. The…

A: Production function = 4K0.5L0.5 w = 15 r = 2 K = 400 At optimum, MPL/MPK = w/r (2*K0.5*L-0.5 ) / (2*…

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: 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: Using Techniques Units of Variable Inputs Produce 1 unit of output K L 12 2 units of output A 14 12…

A: AVC the general variable value per unit of production is that the average variable value (AVC).…

Q: When the input price is constant, the slope of the total factor cost function will also be constant.…

A: When the input price is constant, the slope of the total factor cost function will also be constant.…

Q: A soap manufacturer has the production function q = LK² and faces a wage rate of $45 and rental rate…

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

Q: ind the optimal amount of labour and capital that you will be using, and compute the total cost.

A: Put given Q = 200 and solve for K put that value in Cost and minimize Cost.  Find optimum values of…

Q: In the short run, a tool manufacturer has a fixed amount of capital with labor as its primary…

A: A production function illustrates the relationship between the inputs used and the output produced…

Q: c) Give a formal definition of increasing, decreasing, and constant returns to sale, and determine…

A: Increasing Returns to Scale Increasing our inputs by m increases our output by more than m. Constant…

Q: Consider a simple three-step manufacturing process as illustrated in the figure given. Assuming the…

A: Demand is a monetary guideline alluding to a purchaser's craving to buy labor and products and…

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: Consider a firm with the production function q = L}K* The firm faces a wage rate of w = 20 and a…

A: The given production function is a ‘Cobb-Douglas’ function where the producer uses both labor(L) and…

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: A firm is currently producing 500 units of output daily by employing 60 units of labor daily at a…

A: marginal rate of technical substitution is the rate at which one factor of production can be…

Q: Suppose that a firm had a production function given by: q=LK () is $5. The wage rate (w) is $10 and…

A: In economics, a production function gives the technological relation between quantities of physical…

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

A: We are going to find the production function first to check whether these two inputs are perfect…

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

A: The isoquant would result in the downward sloping curve which would result in various combinations…

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

A: