Let the production of Y use two factors K and L. The production function is given by: Y =√4?√9?. If the prices for capital and labor are the same, then show that the firm will use the same quantities of K and L.
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- Which of the following statements are true? A basic assumption of the theory of production is that: A firm cannot borrow money to finance its input expenditures. A firm can buy as much labor and capital as it desires in the long-run A firm can reduce the number of workers it uses, but it cannot adjust how much capital it uses in the short-run When the marginal product of labour starts falling, the firm must cease production a. II only b. II and III c. I, III and IV d. II, III and IVGiven the production function for labor and capital: Q = L^½(K^½), and q = 100. If the firm wants to increase all inputs by a common factor t, where t > 0. What happens to the output that the firm produces?Ab 11 Economics A production function is given by the equation Q = 48L^0.5*K^0.5. Where L is the number of labor units and K is the capital units. Find the marginal product of labor (QL) and the marginal product of capital (Qk) at L=9 and K=16.
- Suppose that the production function q = f(L,K), shows that if L = 3 and K = 5 then q = 10. Is it possible that L = 3 and K = 6 yields q = 11 for this production function?True or False A production function in "economics" summarizes the technological relationship between inputs and outputs.Which of the following statements best describes a production function? Group of answer choices all levels of inputs that could produce a given level of output the maximum profit generated from given levels of inputs the maximum level of output generated from given levels of inputs all levels of output that can be generated from given levels of inputs
- David Ricardo ([1817] 1965) modified Smith’s model by introducing diminishing returns to land cultivation. Diminishing returns implies that as you apply more of a variable input (labor) to a fixed input (land), the productivity of each additional worker will eventually decline as long as technology isfixed. He claimed that land was of variable quality and finite. Thus, as an economy grows, population grows relative to land, and the productivity of the labor on the land will decline. According to Ricardo, the only way stagnation could be averted, at least temporarily, would be through the trade and imports of cheap food or wage goods. The essential doctrines of John Stuart Mill (1848) differed little, if at all, from those of Ricardo. He, like Smith, believed in the doctrine of laissez-faire , but he also recognized the possibility of modifying the system. He displayed a leaning to the socialist ideal, growing closer as his life advanced. He believed that we should sacrifice economic…A positive technological change will Group of answer choices shift the per-worker production function down. move the economy along a given per-worker production function to the left. shift the per-worker production function up. move the economy along a given per-worker production function to the right.Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. ( Maximum100 words).
- Suppose the production function is Y = f(K, AN) and the economies of scale are invariant . When will output increase by 7% at a given skill level ? Please choose one. N and A increase by 7% each . K and AN increase by 7% each . N or A increases by 7% . Increases K or AN by 7%The following graph shows a variety of possible production functions (PFs) in an imaginary economy, assuming constant levels of human capital and capital stock. Because human capital and capital stock remain unchanged, each of these production functions represents a different level of the technology. The slope of the line connecting the origin to point A is _______ (options: steeper, flatter) than the slope of the line connecting the origin to point B, because the slope of such a line is equivalent to __________ (options: the marginal physcial product of labor, marginal cost, productivity).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?