Suppose a farmer is using two inputs, labour (L) and capital (K), to produce the same amount of wheat (i.e. 100 tons of wheat). The production function is given by L0.5 + K0.33 a) Discuss any three (3) characteristics of the model described above. b) Explain how it would be possible for a farmer to use L and K to produce the same amount of wheat.
Q: 11 Q3. y=LAK and (p = $10, w = $5,r= $5). Find the optimal labor and capital, (L", K") to maximize…
A: The amount of labour that maximises production and profit while minimising expenses is referred to…
Q: In briefly Explain the government budget deficit and debt and how this can cause crowding out for…
A: A deficit occurs when the government spends more than it receives, and the state's debt is equal to…
Q: Problem 2: You were entitled to receive $5,000 at the end of six months for the rest of your life.…
A: Amount received = 5000 r = 10%
Q: Calculate per capita income for both countries.
A: Given, Country L = Population (millions) K = Capital (trillion) Y = Output (trillion) Mexico…
Q: Consider the following Demand and Supply curves: WTP=246-2.2QD MC=14+2.1QS Calculate the producer…
A: Demand curve: P = 246 - 2.2 Q {the demand curve is also known as the willingness to pay curve (WTP)}…
Q: a. Explain the important steps in the construction of Causal Loop diagram. Also provide link…
A: The behavior of cause and effect from the perspective of a system is shown using causal loop…
Q: One approach to determining the consumptive use value of a resource that is normally not accounted…
A: Option d is correct - the existence value. Even if an individual or group of people never uses a…
Q: Individuals or companies whose needs are far ahead of market trends are referred to as high…
A: Solution: Option-c will be correct i.e. Lead users Explanation: Option-c will be correct. Being far…
Q: I need help otherwise downvote asap
A: We know that In an economy, there occur various activities. Activities are related to production,…
Q: A consumer of two goods has indirect utility v(p,w) = (a) Find the indirect money-metric utility…
A: The answer to the above question is as follows:
Q: The production possibility frontier of an economy is as shown in Figure 1. (a) () If the economy…
A: The Production Possibilities Frontier (PPF) illustrates all the possible output combinations of two…
Q: (Pre-pandemic), Qantas identified that its business traveller customers have a less elastic demand…
A: The elasticity of demand: Elastic demand is demand in which the quantity demanded varies greatly…
Q: The average annual income rises from $25,000 to $38,000, and the quantity of bread consumed in a…
A: Income ($) Quantity (Bread) 25,000 32 38,000 28
Q: KYC Policy Know your Customer What is the registration process to be tether customer?
A: Know Your Customer (abbreviated as KYC) refers to an approach of gathering information related to…
Q: Why do bars offer free peanuts?
A: Bars tend to increase the demand for drinks and beers through the various incentives and…
Q: 28 24 20 16 12 8 4 0 P S1 D1 048 12 16 20 24 Q 14. If a $6.00 per unit tax is imposed on this…
A: When tax is imposed then the market price will be higher than the equilibrium price and this will…
Q: If net investment in 2012 is $350 billion and gross investment in 2012 is $500 billion, depreciation…
A: The answer to the question is as follows:
Q: Shala Co. is making a decision about investing in new technology. It currently expects to earn Php…
A: Expected value (otherwise called EV, assumption, normal, or mean worth) is a long-run normal worth…
Q: Suppose a farmer is using two inputs, labour (L) and capital (K), to produce the same amount of…
A: Given production function Q=L0.5+K0.33 MPP refers to the change in total production due to change in…
Q: If a firm produces nothing, which of the following costs will be zero? Select one: O a. variable…
A: Total cost is the summation of total fixed cost and Total variable cost. Total fixed cost are those…
Q: The GDP of the U.S. in 2002 was around $10 trillion. This means Group of answer choices All of…
A: GDP or Gross Domestic Product is the sum total of the market value of final goods and services…
Q: 5) Consider indifference curves for the consumption of milk and chocolates (you may assume that both…
A: The indifference curve refers to the curve that shows the combination of two goods in various…
Q: 1.Show that interest rate has an impact on the income velocity of money.
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Why is the interest 2% instead of 8%
A: Making decisions based on the present value of cash flows is a very practical strategy. When…
Q: QUESTION 9 Compare and contrast the output gap before and after 1980 and select the statement that…
A: As the actual data is not given, so we will answer based on the diagram provided
Q: Suppose the Occupational Safety and Health Administration were to mandate that all punch presses be…
A: The labor is demanded till the point where the marginal cost of hiring an additional worker is equal…
Q: cenari A farmer, Kgabo Phaka, is known for his high-quality cattle and he is one of the primary…
A: Key information from the above paragraph is mentioned below: A farmer "Kgabo Phaka" is the…
Q: Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 00 a 4…
A: Elasticity measures the responsiveness of quantity demanded with respect to change in quantity…
Q: lunch and transportation 1) Suppose that your wage is $120 for every day you work. You also spend…
A: Opportunity cost can be defined as the potential benefits that is given up by an individual or a…
Q: Sven, Andrew and Becky each have an income of $5. Initially the price of commodity x and the price…
A: We know that the budget of a consumer is given by: M= xPx + yPy , where, M= Money income of the…
Q: Study recent high inflation. You need to explore the inflation both in the long-run and short-run…
A: Inflation is the rise in average price level of goods and services over period of time. It decreases…
Q: →→ Calculate the sope of the tal Vod - je ods Vad 2 O Point of 1 Two of a Told cont
A: Total cost curve is upward sloping which means it is positively sloped. This is because as output…
Q: I am having trouble finding out the formulas to complete this question: The production function…
A: Production Function : q = -0.6L3 + 18L2K + 10L Wage: w=$100 Rental rate: r=$800 1. Taking capital…
Q: At any quantity, when the marginal benefit equals the marginal cost, that quantity is said to be
A: Marginal benefits represents the maximum willingness to pay of the consumers. And it is also…
Q: QUESTION 20 f(x) = (3x-4) 4. What is f'(x) at x=2? QUESTION 21 f(x) = x-1 x+1 What is f'(x) at x=1?
A: To find out f’(x) of a function, differentiate the function with respect to x taking other variables…
Q: Cookie Chocolate chip Peanut butter Oatmeal Sugar/shortbread Other Total Frequency 483 231 147 126…
A: The survey is taken for 1050 adults and we are given the frequency distribution for the same.
Q: In 2004 the change in business inventories is -$50 billion and GDP is $160 billion. Final sales in…
A: Gross domestic product (Gross domestic product) is the all out financial or market worth of the…
Q: 1. Suppose a utility function is given by u(x₁, x2) = 2√√x₁ + 4x₂. (a) Specify the equation of the…
A: Utility function: u(x1,x2)=2x1+4x2 ...... (1) The optimal consumption bundle is (9,4) and…
Q: Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,…
A: Comparative advantages is international trade theory which refers that when one country has lower…
Q: Given a demand function of Q = 20 - 2P, find the price range for which; A) Demand is elastic B)…
A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three sub-parts at a…
Q: Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12…
A: Investment Cost = 12,693 Salvage Value = 3,000 Annual Operating Cost = 1000 Overhaul Cost (end of…
Q: Complete the following table for a perfectly competitive firm and assume the firm can only produce…
A: The market is perfectly competitive. Therefore the firm is a price taker and profit maximization…
Q: uppose a low-income family that earns K750 per month consumes 8 Kgs of Hamburgers and 2 Kgs of Beef…
A: Income elasticity of demand measures the change in quantity of good due to change in the income of…
Q: 12. Which of the following statements is/are true? a) A change in supply of a good is the result of…
A:
Q: 12. In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. a.…
A: "In economics, opportunity cost in production of two products represents the number of units of one…
Q: Do you believe that eventually China will inflict force/violence against the Philippines? Defend.
A: In the long run, China will not use force or violence against the Philippines, it is not something I…
Q: Hedonic wage studies indicate a willingness to pay $40 per person for a reduction in the risk of a…
A: Every production process needs factor inputs to produce its products and services. These inputs have…
Q: Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit…
A: If relative prices were in equilibrium, the ratio would be 1.5, meaning that apples would cost 1.5…
Q: Long-run average cost (AC) of operation may decrease for three reasons. a. List and explain the…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 subparts for you. If…
Q: Consider 2 people: Jonathon already purchased a non-refundable ticket to a tournament basketball…
A: There is very important role of the type of cost to make decision. There are various types of cost…
Assist with A and B please
Step by step
Solved in 2 steps
- Suppose that we have a linear production function Q = 10L + 2K. (Quantity = labor + capital) If the price of labor is $5 per unit and the price of capital services, r, is $2 per unit. Find the optimal input combination given that the firm wishes to produce 200 units of output.1. Given the production function Q = f(L,K) = KL2 – L3 , where Q is output and L and K are the labor and capital inputs, respectively. Suppose K is a fixed input set at 15 units. Mathematically and graphically show the input levels that divide stages I & II and stages II & III of production.2.Consider the production functions for X and Y given below.X = 2K2 + 4L ; Y = 10K0.5 L0.5 ; Suppose the isocost equation is given by C = 4L + 10K, derive (i) the long-run cost function for good Y and (ii) the short-run cost function for good X if 10 units of capital are employed in X.3. Given: Q = 100K0.6L0.8; w = 50; r = 80; Q0 = 2,000. Graphically illustrate the expansion path for the firm if it decides to increase its target output to Q1 = 4,000.Which of the following statements is (are) TRUE?I. If labor and capital are perfect substitutes in production, the isoquant is a downward-sloping line.II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.III. If the production function is given by Q = min(14, 7), the firm can produce, at minimum, 21 units of output. IIII, II, and IIIII and II Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Suppose the production function of a firm is given as: Q = 5L + 10L2 – 2L3 Find the number of labors that would yield maximum values of TP, AP, and MP? Base on the results on “a”, provide a range of values that would reflect the three stages of production.The figure shows the production function of a farmer who produces grain by working certain hours each day. Which of the following statements is correct about this production function? a. The slope of the production function represents the marginal rate of substitution. b. The ceteris paribus assumption means that the farmer becomes more productive as he works more hours. c. A rightward movement from B along the production function implies that the farmer has better technology. d. This production function exhibits economies of scale. e. A technological improvement would shift up the production functionanswer question d Q5. Jason is running a cleaning business, there are available labours (L) and machines (M) for Jason to use as inputs to produce cleaning service for his clients. a) Suppose Jason must use both labours and machines without any specific ratio to complete the service for his clients, please write down the general production function formula for Jason. hint: you could use any letter if you want] b) Under the function form of a), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) equals to 2, how do you interpret it? c) Assume Jason now can use only single input, either labour or machine to complete the service, please write down the general production function formula for Jason. hint: you could use any letter if you want] d) Under the function form of c), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) is always larger than the market price ratio between labour and machine (w/r), what should Jason do? why?
- Assume that Donnell Corp. is currently producing 500 units of output per period, using 25 units of labor and 20 units of capital. Values for the marginal product of each input and the prices of the inputs are as follows: MPK = 100, MPL = 200, w = 2, and r = 3. Given the information above, which of the following is true? a. The firm is currently using the optimal levels of capital and labor. b. The firm should increase labor and reduce capital usage. c. The firm is not using the optimal levels of capital and labor, and it is impossible to determine the optimal levels from the given information.Answer the Constrained Optimization: Cobb-Douglas Production Function:3. Solve for the formulas of the Marginal Product of Labor (MPL), and Marginal product of Capital (MPK)4. Using your knowledge of the tangency condition in Producer’s theory, find the combination of K and L that the firm should use to produce the maximum possible output. Do not solve the problem using the Lagrangian method.Note: The tangency conditions just states that the slope of the production function must beequal to the slope of the isocost function.5. What is the maximum possible output that the firm could earn given the constraint it facesQ5. Jason is running a cleaning business, there are available labours (L) and machines (M) for Jason to use as inputs to produce cleaning service for his clients. a) Suppose Jason must use both labours and machines without any specific ratio to complete the service for his clients, please write down the general production function formula for Jason. hint: you could use any letter if you want] b) Under the function form of a), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) equals to 2, how do you interpret it? c) Assume Jason now can use only single input, either labour or machine to complete the service, please write down the general production function formula for Jason. hint: you could use any letter if you want] d) Under the function form of c), assume Jason's Marginal Rate of Technical Substitution (MRTSL, M) is always larger than the market price ratio between labour and machine (w/r), what should Jason do? why?
- You have been hired by Kia as manager for its Pakistan operations. Assume following is the short-run production function at their assembly plant outside Karachi: Q = 10L2 – 0.5 L3 where L is variable input labor, Q is output of Cars assembled 1.Find the ranges of the three stages of production. 2.Demonstrate the relationship between Total Production, Marginal Product and AverageProduct in a hypothetical graph and clearly label the three stages as per the values of Lyou observed in (a) above 3.At the end of the year it is expected that output will double with purchase ofnew equipment and machinery. The production function is estimated to be Q = 60L.30K.70 where L is labor and K is capital. Suppose initial L1 = 1 and K1 = 1. When inputs are in increased to L2 = 2 and K2 = 2, do you observe increasing, decreasing or constant returns to scale? 4.Assume Kia Head Office is considering hiring more laborers either at their Gwadarplant or…Consider the following production function when K is fixed. (This is a description of the figure: it shows a two-axis graph; in the horizontal axis we measure labor and in the vertical axis we measure meals; the graph of the production function is a line that intersects the vertical axis at a positive amount; this graph is a line with positive slope and passes through the point (4,300)). Can we say that the production function satisfies the law of decreasing marginal returns of labor?True FalseA firm that always employs two workers for each unit of capital follows which type of production function?O. Cobb-DouglasO. substituteO. LinearO. Leontiet