Q4The output of a production process, Q, is given by the functionKLQ =K+ 2Lwhere K and L denote capital and labor.(a) Calculate the output when the capital and labor are 40 and 30 units, respectively.(b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used.(c) Transpose this formula to express K in terms of Q and L.Q53The equations defining a simple model of the economy are:C = 0.75Y + 18I = 22where C, Y and I denote consumption, national income and planned investment,respectively.Use this model to complete the following table of values and hence draw an accurategraph of C + I plotted against Y on the interval 0 < Y< 200.100200C + IBy drawing a second line on the diagram, calculate the equilibrium level of national income.Use your graph to explain what happens to the equilibrium level of national incomewhen the marginal propensity to consume decreases with autonomous consumption fixed.

Q4 The output of a production process, Q, is given by the function KL K+ 2L where K and L denote capital and labor. (a) Calculate the output when the capital and labor are 40 and 30 units, respectively. (b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used. (c) Transpose this formula to express K in terms of Q and L. 05

Q4 The output of a production process, Q, is given by the function KL K+ 2L where K and L denote capital and labor. (a) Calculate the output when the capital and labor are 40 and 30 units, respectively. (b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used. (c) Transpose this formula to express K in terms of Q and L. 05

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 8E

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