In workout problem 20.1, the production function is given by AL) = 6L2/3, Suppose that the cost per unit of labor is $12 and the price of output is 12, how many units of labor will the firm hire? %3D 32 O 192 O 64 O 128 Onone of the above

In workout problem 20.1, the production function is given by AL) = 6L2/3, Suppose that the cost per unit of labor is $12 and the price of output is 12, how many units of labor will the firm hire? %3D 32 O 192 O 64 O 128 Onone of the above

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section17.2: A Production Function And Economic Growth

Problem 4ST

See similar textbooks

Related questions

Q: 12 of 15 Which one of the following statements regarding the price-setting curve is true? O If…

A: The curve for determining prices Curve for determining prices When enterprises set their…

Q: Part D and e

A: (d) Average total cost is the ratio of total cost and output and is computed as C(Q)/Q, where C(Q)…

Q: A firm's short run production function is given by Q=20L2-2.5L3, the value of L that maximize the…

A: A firm makes business or economic activities to earn revenue and profit. Firms generally try to…

Q: For the production function y = 4x1+ 3x2, which of the two inputs is more productive when x1 is 10…

A: y = 4x1 + 3x2 Differentiate y w.r.t x1 to get the marginal product of x1 =>MP1 = dy / dx1 =>…

Q: The Acme Anvil Company's output is given by the Cobb-Douglas Production function P = 60L²/3K²/3,…

A: We are going to use lagrange maximisation technique to answer this question.

Q: Consider a firm with production function F(K, L)=3L+8K. Assume that capital is fixed at K=12. Assume…

A: answer to the question is as follows :

Q: In Carsland which industry is labor-intensive and why? Compare the ratio of labor to capital…

A: In an economy, industries are compare on the basis of their input resources and accordingly make…

Q: The economist for the ABC Truck Manufacturing Corporation has calculated a production function for…

A: Production function: Q = 1.3 (L0.75) (K0.3) Where Q is the number of trucks produced per week L is…

Q: For a producer willing to produce 100 units of output at the minimum cost, what is the optimal…

A: Cost of production is minimized at the level where slope of isoquant is equal to slope of ratio of…

Q: If the current output of shoes is Q3, then: society would consider additional units of shoes to be…

A: Economics is a study that analyzes human behavior for its unlimited desires in terms of limited…

Q: 1. Suppose the production function for trucks is given by: q = kl + 61² – ÷13 where q represents the…

A: The production function refers to the functional relationship between the quantity well produced…

Q: Suppose that the production Is given as follow: Q(N) = 22VN, where N = units of labor employed The…

A: Production function : Q = 22(N)0.5 Price of output = 10 Price of input = 15 Cost = Input price *…

Q: A firm's short run production function is given by Q=20L2-2.5L3, the value of L that maximize the…

A: Hi. Since there are two questions we will solve the first one.

Q: A new medicine is discovered that uses component X1 and X2 in fixed proportions where each unit of…

A: Answer: The formula of the average cost is given below: Average cost=Total costtotal output Given,…

Q: If Y=K^(0.5) L^(0.5), and capital is equal to 4, and labour is equal to 8, what is the MPL?…

A: MPL or marginal product of labour is the increase in a firm’s output when one extra unit of labour…

Q: Consider an economy where the production function is Y = K L¹, with a 0.75. Suppose this year there…

A: "Production function reflects a relationship between inputs used in the production process and the…

Q: Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (T)…

A: Marginal product (MP): - it is the additional units of a product produced by an additional unit of…

Q: 9 of 38 Suppose that a firm wants to maximize the profit in a context of short run. If the MP of…

A: Marginal Product of labor refers to the additional unit of output produced by hiring an additional…

Q: Suppose the short-run production function is q = L?. If the marginal cost of producing the ninth…

A: The term "cost of production" refers to all the costs that are involved when a company offers a…

Q: Suppose that firms face the following production function: Q = L/3K2/3. Suppose also that price of…

A: A firm minimizes cost of production by producing at a level where ratio of marginal product of labor…

Q: Assuming a worker can earn a maximum of $180 in total earnings. If the maximum number of working…

A: Total Maximum Earning = 180 No of hours available = 16 2 hours are fixed cost

Q: 3. If MPL = 5L¹/³ is a firm's marginal-product function, where L is the single input labor and…

A: MPL=5L13Now,Production function=Total product of labor(TPL)We…

Q: Consider a firm with production function F(K, L)=3L+8K. Assume that capital is fixed at K=12. Assume…

A: The answer to the questions is as given below :

Q: 1. You are given the following production function for a cost-minimizing firm: Q=500K o.5 the price…

A: We are going to use concepts such as Marginal rate of technical substitution to answer this…

Q: Suppose firms have a CES production technology Y = [(AK)P + where -o <p<1 is the CES parameter and A…

A: Solving the equation to understand the relationship between capital and labour.

Q: If a price-taking firm's production function depends only on labor L and is given by q = 2L2, then…

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

Q: Consider the production function of gadgets: Q= 2.9K12 L0.5 where Q is units of output per month, K…

A: In the question above, it is given that : Production Function : Q = 2.9K1.2L0.5 K is hours of…

Q: The firm's production function is given by: Q(L,K) = L1/2K1/2 %3D The hourly wage is $20, the rental…

A: Q(L,K)=L0.5K0.5 Wage=$20 Rental rate of Capital=$50 The hourly wage is $20, the rental rate of…

Q: Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm…

A: Given information: Q= L - L2 / (23 *100) => Q =L - L2 / 2300 ------------> Production function…

Q: Q = f(L) = 15L2 – L3 Price = 10 Wage Rate = 270 Graphically and mathematically show that the…

A: We know that total product is maximum when Marginal product is zero . And in second stage of…

Q: 2wrQ Suppose the long-run cost function is given by: C(w.r. Q) =, (w+r) What would be the…

A: Conditional demand is the level of input where cost is minimized required to produce the given level…

Q: The demand curve for the final product is P = 40 - Q/10. The cost of Labor is WL 5. The production…

A: P=40-Q/10 Cost of Labor : wL=5 Production Function : Q=10L Marginal Revenue Product is the change…

Q: Suppose a local developer has built 24 houses so far this year at a total cost to the company of…

A: Marginal cost of the 25th house can be calculated as follows: Thus, the marginal cost of the 25th…

Q: A profit-maximizing competitive firm uses just one input, x. Its production function is q 2x2,…

A: A firm will maximise its profit where price of an input is equal to value of marginal product

Q: 2. The table below shows the number of total product produced by its corresponding number of…

A: the time period is not mentioned in this problem so we consider it as the short-run problem i.e. in…

Q: 50g V(1000 + 3q)

A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: A firm's production function is Q = 100L-6 K-4. The firm's input prices are PL = $40 and PK = $30.…

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

Q: Given the hourly costs: Machine-P60; Worker-P50 Each input has to work in integer hour Marginal…

Q: A firm producing hockey sticks has a production function given by: q = 2LK. In the short run, the…

A: Total variable cost (TVC): - it is the total value of the cost incurred in the employment of…

Q: Suppose Firm A has a budget of P1.5 million pesos in outsourcing inputs, labor and machines, that…

A: A budget in economics is described as the estimation of expenses and revenues over a particular…

Q: A perfectly competitive firm's production function is Q=4LK where Q is the amount produced, L is the…

A: Marginal product of labour refers to the change in total product when an additional unit of labor is…

Q: the graph below, the region of production is between and units of labor, L. Q/L 36 72 136 180 208…

A: As higher volumes of a variable input (particularly labour) are added to a fixed input, short-run…

Q: A grave digging firm hires 2 daily workers (L) at a wage (w) of $20, and has 4 units of capital (K)…

A: Given: w=$20, r=$25 K*=4 and L*=2 At optimum, MPLMPK=wr

Q: 2. The table below shows the number of total product produced by its corresponding number of…

A: As you are adding C part to the question , we assume that you are asking for Ques 2 to be answered .…

Q: The firm's production function is given by: Q(L,K) = L/2K 1/2 The hourly wage is $20, the rental…

A: The production function is the total output which can be produced with the given total inputs to the…

Q: Consider a production function given by y = min{4L, K). The price of one unit of Lis $1 and the…

A: Production function : y=min{4L=K} Given that output to be produced=16 units. The given production…

Question

In workout problem 20.1, the production function is given by FAL) = 6L2/3, Suppose
that the cost per unit of labor is $12 and the price of output is 12, how many units of
labor will the firm hire?
%3D
32
192
64
128
none of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the difference between a fixed input and a variable input?
A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is variable. The firm’s production function is: X=-0.2L3 + 18L2 + 1620L. Where X is the number of units of the product per week, and L is the number of persons employed. A t what weekly output is marginal cost equal to average variable cost? if the price of the product is $0.20 per unit, what is the maximum weekly wage that the firm would pay rather than close down?
QUESTION ONESuppose a firm’s production function is given by Y = 4L0.5 and its (inverse) product demand curve is P = 20 −0.5Y. The firm can hire labour at a wage rate of K12. a) Find an expression for the marginal product of labour. b) How many workers will the firm hire? c) What level of output does the firm produce? and What price will it charge?
Assume in a given company the marginal productivity can be characterized by the following function MPL = 100 - L, where L denotes the number of higher workers.If the price of the good purchased by the company is 10 gel, and the workers wage is set at 600 gel. How many workers should a company hire to achieve the maximum profit? Select one a - 40 b - None c- 99 d- 60
Given the Production function for Mwaba & Mutale Enterprises as follows: Q = f (k,l) = 300k 2l2 - k 3l3, Assuming the value of K is 5, Determine the value of L, for which APL is maximum Prove that at the point where MPL is equal to APL , APL is maximum. The value of labor input L, for which output is maximum Total output at this value of labour
I am having trouble finding out the formulas to complete this question: The production function for a firm is q = -0.6L3 + 18L2K + 10L where q is the amount of output, L is the number of labor hours per week, and K the amount of capital. The wage is $100 and the rental rate is $800 per timeperiod. Using Excel, calculate the total short-run output, q(L), for L = 0, 1, 2, …, 20, given that capital is fixed in the short run and K = 1. Also calculate the average product of labor; APL, and the marginal product of labor, MPL. For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost , AC; and the marginal cost, MC. Using excel, draw the AVC, AC, and MC curves in a diagram. You will not be able to solve the total product curve for L as a function of output. So, instead construct a table. Headings: L q(L) APL MPL VC TC AVC AC MC w/APL w/MPL
Toyota hired you as a manager for its operation in Pakistan. Suppose that the following is the short-run production function at their assembly plant in Pakistan: Q = 7L + 0.6L2 – 0.1L3 where L = Labor (Number of workers), Q is quantity of output (Cars assembled) per week Find the labor value when the MPL is Maximum. Find the value of MPL at its maximum. Assume Toyota Head Office is considering hiring more laborers either at their Quetta plant or alternatively at the Karachi plant. What will be your advice if workers’ marginal product is 400 at wage of Rs=100/hour in Karachi and marginal product is 350 at wage of Rs=800/hour in Quetta? At the end of the year it is expected that output will double with purchase of new equipment and machinery. The long-run production function is estimated to be Q = 60L+ 50K + 200 where L is labor and K is capital. Suppose initial L1 = 15 and K1 = 20 When inputs are…
Roland Umbrellas has a production function given by Q = L0.5K0.5. The wage (W) is $80 per day and the rental per unit of capital (R) is $5 per day. In the long run, how many units of capital will Roland want to buy for each unit of labor?
A small consulting firm is only interested in hiring graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(S)= 100S – (1/8)S2 . Hiring additional workers will increase production F(S) over relevant ranges of S. But is the 51st S more valuable than the 50th S in terms of her additions to overall production? What quantity of graduates should this firm hire and why does it stop hiring at this level of S? How does your answer change if the production function is F(S)= 200S –(1/8)S2 and the wage increases to $22?