If the production function of a firm is given by Q=K2L3 and the input prices are r=Birr 8 per unit and w=Birr 2 per unit, Find the levels of labor and capital that maximize the level of output for a total outlay of Birr 240
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If the production function of a firm is given by Q=K2L3 and the input prices are r=Birr 8 per unit and w=Birr 2 per unit, Find the levels of labor and capital that maximize the level of output for a total outlay of Birr 240
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- If the production function of a firm is given by Q=K2L3 and the input prices are r = Birr 8 per unit and w = Birr 2 per unit, Find the levels of labor and capital that maximize the level of output for a total outlay of Birr 240.If the production function of a firm is given by Q=K2L3 and the input prices are r=Birr 8 per unit and w= Birr 2 per unit, find the levels of labor and capital that maximize the level of output bfor a total outlay of birr 240.If the production function of a firm is given by Q=K^2L^3 and the input prices are r= 8 per unit and w= 2 per unit find the levels of labor and capital that maximize the level of output for a total outlay of 240 birr?
- If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit, Find the levels of labor and capital that maximize the level of output for a total outlay of Birr 240.If the production function of a firm is given by Q= K2L3 and the input prices are r= birr 8 per unit and w= birr 2 per unit, find the levels of labor and capital that maximize the level of output for a total of birr 240.With a production function of Q = L + 2K if r = $4 and w = $4, how many units of capital and labor will be optimally utilized? All K and no L. All L and no K. Equal amounts of K and L. A combination of K and L not represented above.
- The Cobb-Douglas production function can be shown to be a special case of a larger class of linear homogeneous production functions having the following mathematical form: Q=γ[δK−ρ+(1 - δ)L−ρ]−ν/ρ�=�[δK−ρ+(1 - δ)�−ρ]−ν/ρ where γ is an efficiency parameter that shows the output resulting from given quantities of inputs; δ is a distribution parameter (0 ≤ δ ≤ 1) that indicates the division of factor income between capital and labor; ρ is a substitution parameter that is a measure of substitutability of capital for labor (or vice versa) in the production process; and ν is a scale parameter (ν > 0) that indicates the type of returns to scale (increasing, constant, or decreasing). Complete the following derivation to show that when ν = 1, this function exhibits constant returns to scale. First of all, if ν = 1: Q� = = γ[δK−ρ+(1 - δ)L−ρ]−1/ρ�[δK−ρ+(1 - δ)�−ρ]−1/ρ = = γ[δK−ρ(−1/ρ)+(1 - δ)L−ρ(−1/ρ)]�[δK−ρ(−1/ρ)+(1 - δ)�−ρ(−1/ρ)] = = Then, increase the…Given the production function Q=30K0.7 L 0.5 the input price are w=30 a Determine the equation for the expansion d r=20 What is the different efficient input combination for an output rate of Q = 200 ? for Q=500?With a production function of if r = $4 and w = $4, how many units of capital and labor will be optimally utilized? All K and no L. All L and no K. Equal amounts of K and L. A combination of K and L not represented above.
- Consider the following production function:q = (KL)^α, where α > 0. (a) Confirm that the marginal physical product of capital is homogenous of degree zero in the case in which the production function exhibits constant returns to scale.(b) Derive an expression for the cost function of a firm using the production function to produce output of a good.(c) Find the first and second partial derivatives of the cost function with respect to q. Interpret the second partial derivative and relate the sign of the derivative to the returns to scale.BereketIf the production function of a firm is given by Q=K^2L^3 and the input prices are r=Birr 8 per unit and w= Birr 2 per unit, find the levels of labor and capital that maximize the level of output bfor a total outlay of birr 240.Output is produced according to a production process given by: Q = 4LK, where L is the quantity of labor input and K is the quantity of capital input. If the price of K is $10 and the price of L is $5, then what is the cost-minimizing combination of K and L capable of producing 32 units of output?
