Skylar owns a firm that produces holiday ornaments. Her production function is given by: f (L, K) = (min{x1 , 2x2})1/2 where x1 is the amount of plastic used, and x2 is the amount of labour.

Q: q = AB + B2 1. Find the expressions for the cost minimizing levels of A and B. You do not have to…

A: Given: q = AB + B2 Where A is = Labor input B, is = Capital input To Find: The expression for the…

Q: Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio…

A: At optimum where production is maximised, marginal rate of technical substitution equals price ratio…

Q: Find out the maximum possible output for a firm with 12 units of L and 24 units of K when production…

A:

Q: A fast-food company in Hermanus has the following cost function: TC = 10 + 3K + 2L, where Lis the…

A: Given  total cost: TC=10+3K+2L            ......... (1) and production function Q=2KL       ........…

Q: Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. At 10 units of output, the average cost…

A: In economics, the cost curve is a graph of production costs as a function of the total value…

Q: For the production function: Q = 12LK , what happens to average cost as the firm produces more? A.…

A: Given, By putting this value of K in production function:

Q: In the short run with fixed amount of at least one input, the law of diminishing returns must apply,…

A: When the one input is fixed then the firm experience diminishing returns because adding one more…

Q: In the previous Problem Set question, we started looking at the cost function C (x), the cost of a…

A: Cost function is given by C(x) = 0.04x3-20x+350

Q: A firm has the following production function: q = KL, where q is output, K is capital and L is…

A: A firm has production function: q = KL,  The price of a unit of capital is $1,000  The price of a…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: The technology for making nails is described by the Cobb-Douglas production function Q(L,K) = L*K,…

A: MRTS is the marginal rate of technical substitution which is the rate at which one input is…

Q: When the marginal cost curve lies below the average total cost curve, it is true that as output…

A: Answer to the question is as follows:

Q: When production function  q= 0.2 LK+ 2L2K- 0.05L3K and  K= 10 are given, find amount of labor at the…

A: Given that: Production function:  q= 0.2 LK+ 2L2K- 0.05L3K K= 10 find the amount of labor at the…

Q: Suppose a firm with a production function given by Q = 30K0.5L0.5 produces 1,800 units of output.…

A: Firm minimizes cost by employing inputs at a point where ratio of marginal product of inputs is…

Q: Suppose a short-run production function is described as Q=30L-0.05L^2 Where L is the number of…

A: Given: Q=30L-0.05L^2 We know, MPL = dQ/dL Therefore, dQ/dL = 30 - L  So, MPL= 30-L = 0 L=30 units

Q: When the production function exhibits _________ returns to scale, the long-run average cost curve…

A: Economies of scale:   The economies of scale are the cost-benefit that the firm achieves by…

Q: If the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum…

A: A production function in economics describes the technological relationship between the quantities…

Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…

A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…

Q: A lot of companies use the marginal cost function for their business models to determine the…

A: 1. We know, Average cost = AC(x) = C(x)/x  Marginal cost MC(x) = C’(x) At the critical points of…

Q: Suppose that a firm’s production function is Q =10 K^(3/4)L^(1/4). The cost of a unit of labor is $1…

A: The interplay between the output that a process gives and the various inputs that go in the process…

Q: Find out the maximum possible output for a firm with 12 units of L and 24 units of K when its…

A: We have to find maximum possible output for a firm with,  Labour (L) = 12 units  Capital (K) = 24…

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: Suppose the production function is q = 18L0.55K0.75. Determine the long-run capital-to-labor ratio…

A: Cost is minimized at a level where slope of marginal products is equal to slope of price ratio of…

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: Suppose that the production of sports cars is given by the following production function: Q - (L/2+…

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

Q: The following table describes the various least cost combinations of two inputs from various…

A: Iso quant shows the different possibil combinations of inputs that give same level of output . And…

Q: Q) The production function       Q = L1/2K   exhibits: Group of answer choices a) Increasing…

A: Given  Production function  Q= L1/2K       .......... (1) To know the return to scale, we increase…

Q: ind the optimal amount of labour and capital that you will be using, and compute the total cost.

A: Put given Q = 200 and solve for K put that value in Cost and minimize Cost.  Find optimum values of…

Q: Assume the following total cost function: Q Total Cost $75 1 105 2 128 What is the average fixed…

A: Average Fixed Cost (AFC): It is per unit fixed cost. It continuously decreases because the same…

Q: Suppose that firms face the following production function: Q = L+7* +K+/*. Suppose also that price…

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Q: If a production function exhibits decreasing returns to scale, then the average variable costs are…

A: ANSWER STEP-1 If A Production Function Exhibits Decreasing Returns To Scale, Then The Average…

Q: Which of the following best describes the isoquants of the production function: q=0.5L+0.3K a.…

A: OPTION B - Linear and Downward Sloping q=0.5L+0.3K  Here, labor and capital are perfect substitutes.

Q: Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain…

A: The whole cost of producing a product may be included in a company's financial records as the cost…

Q: A factory that you are managing has an hourly production process that can be represented by the…

A:

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

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

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

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Q: what is the minimum cost of producing 1000 units of output?

A:

Q: Consider the production function q=√L+8K^(3).  Starting from the input combination (3,6), does the…

A: Given information: Production function q=√L+8K3 Input combination 3,6 (L = 3 and K = 6)

Q: Consider a firm that produces cars with the following production function: q = min(ak, bL) a. Find…

A: The given production function is a fixed proportions production function as the inputs K and L are…

Q: Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio…

A: A firm will maximise profit at a point where marginal rate of technical substitution is equal to…

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Q: If the production function is Q = K5L.5 and capital is fixed at 1 unit, then the average product of…

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Q: Suppose the production function for a product is given by q = 100KL. If the price of capital is $81…

A: Given:  Production Function : q=100KL Price of capital (r) = $81 per day Price of labor (w) = $27…

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: For its current level of production, a firm is attempting to minimize its costs. The firm has…

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Q: Find out the maximum possible output for a firm with two units of L and 50 units of k when its…

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Q: Show that the r/ship between production function and cost function.

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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.