production function when K is fixed at 6000 units. Recall that 9 = 0.02KL0.5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q=.02K^.5L^.5 q=.02(6000)^.5L^.5 q= (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q=2.4L L =f(Q) = L = (Q/2.4) VC=WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.75Q + 450

production function when K is fixed at 6000 units. Recall that 9 = 0.02KL0.5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places). Q=.02K^.5L^.5 q=.02(6000)^.5L^.5 q= (1.5491L^.5)^2 Q = 2.4L Calculate your FC. FC = (0.05) (6000) = 300 I Derive the equation for your VC (as a function of q) Q=2.4L L =f(Q) = L = (Q/2.4) VC=WL = VC = 45(L) = 45(Q/2.4) = 18.75Q Derive the equation for your TC (as a function of q) TC 18.75Q + 450

Name: production function when K is fixed at 6000 units. Recall that 9 = 0.02KL0.5 and r = .05 and w = 45. Calculate your SR production function (round any numbers to 4 decimal places).…
Rating: 5 (2 reviews)

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 2E

See similar textbooks

Similar questions

Does this production function q = 9K0.8L0.1 exhibits [increasing return to scale, constant return to scale, decreasing constant return to scale]
Which of the following production functions exhibits constant return to scale? A) q=KL B) q=KL0.5 C) q=K+L D) q=log(KL)
(1) q=35L + 40K (2) q=L.5K.5 For the production functions of (1) and (2) create the isoquants for q = 100, and for q = 144 with K on the vertical axis and L on the horizontal axis.
Given: Y = 20(L.5K.4N.1) L is labor K is capital N is land L = 100 K = 100 N = 100 Does this production function exhibit constant returns to scale? Explain using numbers
root of K square root N Compute output when K = 49 and N = 81. If capital and labor double, what happens to output? Is this production function characterized by constant returns to scale? Explain.
IGNORE 'increasing' Select the production function with decreasing returns to scale:
please computation for the following production function. found in table 13 show computation for each row.
Given the linear production function: Log (Q) = Log (0.5) + Log (L) + Log (K) Where Q is the level of output, L is the units of labor and K is the units of capital employed. a. Transform the above expression from log linear form to Cobb Douglas form. b. Interpret the returns to scale concept of the Cobb Douglas function. c. What is the percentage increase in output if labor and capital increase by 20%?
Explain the expansion path when it is an increasing return to scale using graph and numbers. What does this mean?
Describe three stages of the returns to the scale
Determine the returns to scale implied by each of the production function. Q = 0.4Y1/2 + 0.3A1/4B1/4 + 2.0B1/2 Group of answer choices Decreasing returns to scale. Constant returns to scale. Negative returns to scale. Exponential returns to scale. Inreasing returns to scale.
Returns to scale in production: Recall that a production function F(K, L) exhibits constant returns to scale if doubling the inputs leads to a doubling of output. If it leads to more than doubling of output, there are increasing returns to scale; if it leads to less than doubling of output, there are decreasing returns to scale. The answers to parts (a) and (f) are worked out below. (a) Y = K1/2L1/2. If we double K and L, output is (2K) 1/2(2L) 1/2 = 21/221/2K1/2L1/2 = 21/2+1/2K1/2L1/2 = 2K1/2L1/2. So output exactly doubles, and there are constant returns to scale. (b) Y = K1/3L2/3 + . This production function says you get units of output “for free,” that is, even if there is no capital and no labor. Then you produce on top of that with a Cobb-Douglas production function. If we double K and L, output is Notice that the first term is doubled, but the output we got for free (the A) is left unchanged. Therefore, output is less than doubled, and this…