Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5 and the Price of L be 2. Then, the equation describing the isoquant for output level 20 is given by: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: LK=10 b: LK=20 c: LK=100 d: LK=200 e: None of the above

Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5 and the Price of L be 2. Then, the equation describing the isoquant for output level 20 is given by: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a: LK=10 b: LK=20 c: LK=100 d: LK=200 e: None of the above

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 7E

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Consider the following production function: f (A, B) = gamma multiply A^alpha multiply B^Beta. where A and B are the inputs and alpha, Beta, gamma are in the set (0,1). Let wA and wB the price of the two inputs. Assume wA, wB > 0. Is the production function separable?Does the production function exhibit constant returns of scale?Compute the cost function and the conditional input demand function.How do these three functions react to a change in wA? Suppose the price of both inputs double, what happens to the conditional input demand function? And to the cost function? Suppose the desired level of output double, what happens to the conditional input demand function? And to the cost function?…
1. Given the production function Q = f(L,K) = KL2 – L3 , where Q is output and L and K are the labor and capital inputs, respectively. Suppose K is a fixed input set at 15 units. Mathematically and graphically show the input levels that divide stages I & II and stages II & III of production.2.Consider the production functions for X and Y given below.X = 2K2 + 4L ; Y = 10K0.5 L0.5 ; Suppose the isocost equation is given by C = 4L + 10K, derive (i) the long-run cost function for good Y and (ii) the short-run cost function for good X if 10 units of capital are employed in X.3. Given: Q = 100K0.6L0.8; w = 50; r = 80; Q0 = 2,000. Graphically illustrate the expansion path for the firm if it decides to increase its target output to Q1 = 4,000.
Given the production function y=(l^p+K^p)^1/p, what is the technical rate of substitution and the the returns to scale when p=0.5?
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.
The production function for a product is given by q=100KL. Its marginal product functions are MPL=100K and MPK=100L. If the price of capital, r, is $200 per day and the price of labor, w, is $400 per day, what is the minimum cost of producing 1,000 units of output? The minimum cost of producing 1,000 units of output is ______? (Round all intermediate results to 3 decimal places and enter your response rounded to two decimal places.)