Currently the wage rate is Gh₵ 2 per hour and capital is rented at Gh₵ 5per hour, the unit price of the product is Gh₵ 0.25 and total cost is1000. Suppose the firm’s production is as follows: Q =14K⁰L⁰+10

Q: A factory that you are managing has an hourly production process that can be represented by the…

A: Cost is minimized when production takes place where marginal rate of technical substitution is equal…

Q: 1. For the following production functions, find the firm's (long run) conditional factor demand…

A: A firm minimizes cost by employing the number of inputs at the point where marginal rate of…

Q: c) Given Y = 10K0.5L0.5 and that w and r are the prices for Labour and Capital i) Derive the…

A: Given information q=10L0.5K0.5 Price of labor=W Price of capital=r

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

A: The demand and supply of the labor determines the equilibrium wage rate and quantity of labor. The…

Q: A small business consists of an owner and a seamstress. The seamstress can sew 20 dresses per month.…

A: Answer

Q: Refer to Table 13-9. The marginal products of hiring additional workers are   a) increasing at an…

A: An additional output produced by an additional worker is known as marginal product (MP).

Q: Coca cola uses labour(L) and capital (k) in its  production process.  It estimates that the…

A: Q= K0.5 L0.5  The selling price of a bottle of coke = GH4 Cost of machine (capital) = GH3 Cost of…

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: Consider the production function Q = 6K//3L/2, where Q, K, and L denote the quantities of output,…

A: Profit = TR – TC TR = P*Q TC= wL + r K w = 12, r = 0.16, so, TC= 12L + 0.16 K The profit function as…

Q: A manager hires labour and rents capital equipment in a very competitive market. Currently the wage…

A: The correct answer is given in the second step.

Q: A college professor at LeTall University, Professor Lai, makes mountains out of molehills. The…

A: Option 1 talks about the production requirement. It explains how many units of molehills (used as…

Q: The following is output data for a firm. Assume that the amounts of all non-labour resources are…

A: The law of diminishing returns states that benefits or advantages acquired from something will…

Q: A company is currently using its two inputs L and K, where MPL - 3.2K04L 0.2 and MPK - 1.6K -0.610.8…

A: Marginal product of labor measures the change in the output level when the labor changes by the one…

Q: The firm aims at maximizing its profits in the short run. The wage level is w=140. The production…

A: L P Q MPL 0 5 0 - 1 5 58 58 2 5 112 54 3 5 162 50 4 5 208 46 5 5 250 42 6 5 288 38 7…

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

A: Given  wage rate of labor (w) = 2 capital rent (r) = 5 Price of Product (P) = 0.75 Total Cost (TC) =…

Q: Suppose that the production function of the firm is: Q = 100L1/2.K1/2 K= 100, P = $1, w = $30 and r…

A: Given, Q = 100L12K12K= 100 P = $1 w = $30r = $40.

Q: Q4. A firm's production function is given by q = 2z1 + 32. Given the input prices, wi for z1 and w2…

A:

Q: A firm has the following Cobb-Douglas production function: q = LªK!-a, where 0 < a <1 is a…

A: Rental cost of capital = r = $10 Wage of labor =w = $20 Capital quantity, K = 1 The production…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-…

A: LMC is the marginal cost which is the change in total cost by producing an additional unit of output…

Q: competitive firm has a single factory with the cost function C(q) = 5q² + 79 and produces 32 units…

A: The marginal cost of creation is the adjustment of complete creation cost that comes from making or…

Q: A bakery is located just up the road from Jane’s home. On Saturday mornings, she, like many others,…

A: It is said that the baker has only one employee on weekdays and five employees on weekends.

Q: Coldbox Corporation hires its workers in a perfectly competitive labor market and produces and sells…

A: Total product shows the total amount of goods produced by labors. Marginal productivity shows the…

Q: Steve and Sons Solar Panels has a production function of Q 4KL and faces a wage rate of $8 per hour…

A:

Q: The production function of a competitive firm is described by the equation y = 1/2G1/2 2.x6x. The…

A: y = 2x1126x212 p1 = $3  p2 = $4To find Marginal Product of good 1 (MP1) differentiate y with…

Q: A purely competitive firm has a single variable input  < (labor), with the wage rate.  W0 per…

A: Purely competitive firm

Q: Find the minimum cost of producing 30000 units of a product, where x is the number of units of…

A: Cost minimization problem of the firm: Min 91x +96y  subject to constraint 30,000 = P(x,y) =…

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: . A production process using two inputs, labor and capital is Q = 5LK where Q is output per day. MPK…

A: When the ratio of labour and capital prices equals the marginal rate of technical substitution of…

Q: A firm’s production function is:  Q = 20L -.5L2.  The firm can sell all the output it wishes at $10…

A: The profit is maximum at MRPL=wage MPL=dQdL=20-LMRPL=MPL*price =(20-L)*10=200-10Lequating to…

Q: Anne would produce 10 robots a week working for an employer that recently offered her a position.…

A: Input cost, in the study of economics, refers to the costs that are required for producing a good or…

Q: Consider a firm producing Smirnoff Mule which uses two inputs-machines and labor-to produce output…

A: The overall cost paid by a firm to create a given amount of a product or provide a service is…

Q: A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is…

A: When MC = AVC, we know that MP = AP MP = dX/dL = - 0.6L2 + 36L + 1620 AP = X/L = - 0.2L2 + 18L +…

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: 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: Coca cola uses labour(L) and capital (k) in its  production process.  It estimates that the…

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

Q: A firm's production is as follows: Q = 12K/2L/3, where L is number of workers and K is number of…

A: Profit is calculated by subtracting Total Cost (TC) from Total revenue (TR). The profit function can…

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: A chair manufacturer hires its assembly-line labor for $20 an hour and calculates that the rental…

A: Suppose that a chair can be produced using 4 hours of labor or machinery in any combination. This…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: We have to calculate The equilibrium wage rate and equilibrium level of labour use.

Q: A company is currently using its two inputs L and K, where MPL - 3.2K04L 02 and MPK - 1.6K -0.6 0.8…

A: At the optimum and efficient point we know: MRTS = Price Ratio of the inputs MRTS = MPLMPK = wr…

Q: Suppose that the production function of the firm is: Q = 100L1/2 . K1/2 K= 100, P = $1, w = $50 and…

A: production function is referred to the relation of the number of inputs which a firm uses with its…

Q: Emco Company has an assembly line of fixed size A. Total hourly output is a function of the number…

A: a. The marginal productivity of labor is the additional productivity made by an additional unit of…

Q: The wage is $15 per hour and Paducah’s daily fixed cost for the lathe and building is $50.…

A: * SOLUTION :-

Q: plene has a production function 4x1 + x2. If the factor prices are £12 for factor 1 and £2 for actor…

A: A production function is a unique relationship between inputs and outputs and shows the maximum…

Q: You've been hired by an unprofitable firm to determine whether it should shut down its operation.…

A: The profit incurred by a firm is the excess of total revenue earned by the firm over the total cost…

Q: The production function for global electronics is Q=2k^0.5 L^0.5 Assume that the capital stock is…

A: Profit=Total Revenue(TR)- Total cost (TC) Total Revenue=Price×QuantityTotal Cost=wLAs K=9,…

Q: Suppose Ramone's Drones maximizes profits by making local deliveries using small drones and…

A: Profit is maximized when MRPK = Cost of capital When Cost of capital = $1000, MRPK = $1000

Q: If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal…

A: Given  Marginal Product of labor(MPL)  = 1 ton of output.  Marginal Product of capital l(MPK) = 7…