Production function is Q = 200√L√K PL = 500 PK = 800 Total outlay, C = 5000 Determine lost minimizing combination of Labour and Capital What is the cost minimizing output level? Construct the equilibrium for isoquant If selling price of this prduct is Rs. 200 per unit, what would be the profit or lost of this organization

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y= f(x1,x2)=x1ax2b a=b=0.5 the price of factor 1 is 12, the price of factor 2 is 3

Q: A cupcake store sells 1000 cupcakes per shift. Every day, the stores open for 2 shifts. Each shift…

A:

Q: If marginal cost for 7th unit is given by the function:- 4Q2 - 3Q + 20 Calculate the marginal cost…

A: The marginal cost function is given as:- 4Q² - 3Q + 20 Also the number of unit produced Is 7 units…

Q: A firm has production function q = K¹/2L¹/2 and pays w = 8, r = 2. a. The firm produces qo = 2 units…

A: We have given price of labor =8 and capital = 2

Q: Marc Nerlove conducted a classic study on economies of scale in the electric utility industry. I…

A: Economies of scale happen when the average total cost  decreases when output increases Diseconomies…

Q: Suppose that instead the production function now is F (L, K) = 0.2L + 0.7K. The wage rate (price…

A: Isoquant could be a curve that illustrates all the potential mixtures of 2 parts that make a given…

Q: A cost function is given. C(q) = 3800 + 7q – 0.03q² + 0.0003q³ (a) Find the average cost and…

A: Disclaimer :- as you posted multipart questions we are supposed to solve only the first 3 questions…

Q: The production function for a product is given by q= 10K^(1/2)L^(1/2) where K is capital, and L is…

A: The production is given as follows-

Q: A widget manufacturer has a production function of the form q= VLK. If the wage rate (w) is $4 and…

A: production function q=Lk,w=4 r=1returns to scorelet y=Lk=f(k,L)solving all factors of production by…

Q: The production function for Q is given as Q = 5K1/2L1/2where K is the amount of capital employed and…

A:

Q: y= f(x1,x2)=x1ax2b Derive the equation for an isoquant curve.   If a=b=0.5 , the price of factor 1…

A: y = x1ax2b x2b = y / (x1a) x2 = [y / (x1a)](1/b)

Q: production function

A: The firm produces at MRTS=w/r   MRTS=MPL/MPK =100K/100L =K/L

Q: Write T if the statement is True, and F if otherwise. 1. Isocost curves show the cost of the firm in…

A: An Iscost curve is a curve that implies a combination of inputs that a firm can buy to produce a…

Q: Prunella raises peaches where L is the number of units of labor she uses and T is the number of…

A: Slope of isocost line is the negative price ratio between the two goods.

Q: A widget manufacturer has a production function of the form q = L? K² . If the wage rate (w) is $4…

A: Since you have posted multiple parts questions, we will solve the first three parts for you. If you…

Q: For a linear production function what is the short-un production function given that capital is…

A: Given information: q=f(L,K) = 10L + 4K Where q is the quantity produced; L is labor; K is capital…

Q: When a firm uses K units of capital and L units of labor, it can produce Q units of output with the…

A: Production function measures the relationship between the units of output produced by using the…

Q: Given the production function of F(K,L) = sqrtKL If the short run has a fixed K of 5 units, which…

A: Here the production function of F(K,L)=KL the short run fixed capital k=5 units so, F(K,L)=KL=5L…

Q: > Consider this total product function with a single variable input, labor (L) per day: TPL = Q(L) =…

A: Total Product refers to the sum of all the products whether goods or services that are produced by a…

Q: A business incurs the following costs: • Labor: $120/unit • Materials: $45/unit • Rent:…

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Q: Consider the following production function: Q = 2K + 6L where K represents Capital, L represents…

A: The linear production shows inputs are perfect substitutes, meaning only one of them is used.

Q: The production function for a product is given by q = 10 K1/2L1/2 where K is capital, and L is labor…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Consider the following information about the input choices and prices, produci the same output in…

A: Cost minimization refers to optimal usage of factors of production such that for production of a…

Q: Suppose a firm uses capital​ (K) and labor​ (L) to produce widgets according to the production…

A: Step1. There was some technical problem while uploading the question. that is why I am writing the…

Q: Prunella raises peaches where Lis the number of units of labor she uses and T is the number of units…

A: An isocost line is a curve that depicts numerous input combinations that cost the same total amount.…

Q: AlphaBee's production function is given by fik.l) = [ min{31,2k} j05, AlphaBee can sell its product…

A: please find the answer below.

Q: A firm's long-run total cost curve is given as: TC (q) = 1000q-30q2+q3. At what quantity is the…

A: The minimum efficient scale (MES) is the balance point at which a company can produce goods at a…

Q: Suppose a firm faces the input prices of labor and capital of w = $15 and r = $2, respectively. The…

A: Production function = 4K0.5L0.5 w = 15 r = 2 K = 400 At optimum, MPL/MPK = w/r (2*K0.5*L-0.5 ) / (2*…

Q: Assume the following production function: q = √k + √l a) Determine the cost function and the…

A: Cost is minimized when MPL / MPK = w/r MPL = ∂q/∂l = (1/2) / (l1/2) MPK = ∂q/∂k = (1/2) / (k1/2)…

Q: (Explicit and Implicit Costs) Determine whether each of the folowing is an explicit cost or an…

A: Explicit Cost:- Explicit costs are normal business expenditures that appear in general ledger…

Q: Suppose that a firm's production function is: 112- q = 10L0.5K0.5 98- Its marginal product functions…

A: Output has increased to 280 units, capital is 14 units. Therefore, q=10L0.5K0.5280=10L0.5(14)0.5…

Q: Consider the production function Q = 20K1/2L1/2. The firm operates in the short run with 20 units of…

A: d. Derive AVC(Q) Q=20K12L12Q=20x(20)12L12Q=89.44L12 APL=QL        =89.44L12L        =89.44L-12…

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

Q: An isoquant represents combinations of inouts that: produce the same level of outout. produce…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

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…

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Q: b. If input prices are w = 40 and r = 10, find the combination of inputs that will allow the firm to…

A: We have input price ratio = w/r = 40/10 = 4 and required to produce q =600 units

Q: A firm's production function for pretzels is shown in Figure 4.1. If the firm's fixed cost equals…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: A firm’s short-run production function is in the form of                        q = aLK +(bL^2)K…

A: Marginal production of labor (MPL) refers to the additional output that obtained by increasing one…

Q: A firm’s only variable factor is labour and it produces a single product, X. It also has fixed…

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

Q: Q.1.16 The vertical distance between the average total cost curve and the average variable cost…

A: Note: As per the guidelines, we are supposed to answer only one question when multiple questions are…

Q: What is the cheapest way of producing 850 units of output if a firm operates with the production…

A: It is given that;

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: The isoquant would result in the downward sloping curve which would result in various combinations…

Q: Consider the production functions for X and Y given below. X = 2K2 + 4L ; Y = 10K0.5 L0.5 ; Suppose…

A: Production Function X = 2K2 + 4L ; Y = 10K0.5 L0.5

Q: A company uses two inputs, unskilled labour (L) and capital (K), to produce its product. The wage…

A: Isocost line is a set of all those combinations of L and K that give the same level of the total…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.