Consider a purely competitive firm that has two variable inputs L (labor hour) and K (machine) for production. The price of product is $p. The production function is Q (K; L) = 4L^1/4 K^1/4 . Assume that the hourly wage of workers is fixed at $w and the price per machine is $r Write out the optimal inputs quantities, L and K, as a function of parameters, p, w, and r

Q: Suppose a firm uses two inputs: capital, K, and labour, L. The profit function is π(K, L, p, w, r)…

A: To find the rate of change in the maximum profit we differentiate the maximum profit function with…

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: The total cost function of a firm is given by: C = q(wy{v)! Where q is total output, W and V are…

A:

Q: Production function is Q(K,E) =2KE where K is capital and E is employment in work hours. Use the…

A: In production, the isoquant curve shows the various possible and feasible combinations of inputs…

Q: Consider the two production functions: .Fixed proportions: q = [min(k, l)]* ii. Perfect substitutes:…

A: Fixed proportions: q = [min (k, l)]s  Perfect substitutes: q = (k + l)s

Q: Suppose that a firm’s production technology is described by the production function f(x1, x2) =…

A: The production function is given as follows: Q = x12 x2 The cost of the firm is minimized at a point…

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: Now suppose that the firm's capital input is fixed at K = K 12. Solve the firm's short-run cost…

A: Given perfect complement production function

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: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y = x1ax2b x2b = y / (x1a) x2 = [y / (x1a)](1/b)

Q: In short-run production where labor is a variable input, the relationship between marginal product…

A: We are given, Economy is in short run. Labor is the variable input. Marginal cost of production =…

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: Consider the case of a firm that produces output x (sold at price p) using a production function x =…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Given the production function: Where CES stands for Constant Elasticity of Substitution. K is…

A: We are going to find the profit function, Production function to answer this question.

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

A: Quantity of Labor (L) Quantity of Output Wage Rate (WR) Total Cost (L*WR) Marginal Cost (TCn -TCn-1)…

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: 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: 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: Suppose a firm's production function is given as Q(K, L) = KªL® where «, ß e (0, 1). And suppose the…

A: Given,  A firms production function : Q(K,L)=KαLβwhere, α,β∈(0,1) The firm charges a price P, K is…

Q: Given the production function y= f(x1,x2)=x11/3x21/3. The amount of  x2 is equal to 216 in the short…

A: Given,  y= f(x1,x2)=x11/3x21/3 Amount of  x2 = 216

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: 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: Suppose a short-run production function is described as Q=30L-0.05L^2 where L is the number of…

A: Suppose, each unit of output has a marginal revenue of $5 and marginal cost of $40, the labours…

Q: Suppose a firm uses capital​ (K) and labor​ (L) to produce widgets according to the production…

A: Step1. There was some technical problem while uploading the question. that is why I am writing the…

Q: If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and…

A: The production function shows the relationship between inputs and output produced. Inputs are the…

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: 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: 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: he firm is a price taker for both bar stools (which sell for P) and workers (which can be hired at a…

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

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

A:

Q: To produce a recorded DVD, a firm uses one blank disk D and the services of a recording machine M…

A: Given information Production function Q = min{D, M} Here 1 DVD is produced by using  1 blank disk…

Q: Suppose the short run production function is q=10*

A: Given the production function, q = 10*L Wage rate = $10

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: Consider Delta, a price-taking single-output, single input firm with the following production…

A: Non decreasing returns to scale implies that the rate of change of output w.r.t to the rate of…

Q: Let the production function of a firm is given as q=(x0.5 +y0.5)2 Where x and y are inputs and wx…

A: a .) Demand condition for the factors of production is achieved at the point where the production is…

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: Consider a firm that produces cars with the following production function: q = min(ak, bL) a. Find…

A: The given production function is a fixed proportions production function as the inputs K and L are…

Q: A short run production function of a competitive firm is given by Y=6L^(2/3) where Y represents the…

A: The production function is defined as the express the relationship between the productive factors…

Q: A firm has a production function given by Q AL" K# and per unit prices of capital (K) and labour (L)…

A: given, Production function Q = ALαKβ                           Wages = w…

Q: For a short run production function q=10lnL if L=5 and wage 3, more workers will be hired if the…

A: more workers will be hired if the price at which the output can be sold is more than 1.5

Q: Calculate the factor demand function Given the product price (P) is 6 and the price of factor 1 (w1)…

A: Given =  y= f(x1,x2)=x11/3x21/3 Amount of x2 = 216 in short run

Q: Suppose you have following production function for your firm :q = 2x,"x, where x, > 0, x, >0 and a ±…

A: Production function:  q = λx1ax21-a   ..........(1) Input price x1 = w and x2 = r The marginal…