Suppose MPL = 0.5 ∗ (q/L) and MPK = 0.5 ∗ (q/K). In the long run, the firm will hire equal amounts of capital and labor A) all of the time. B) only when w = r. C) only when w = 0.5 ∗ r. D only when w = 2 * r. E) at no point in time. .
Q: Solve step by step in digital format If the slope of the total income curve is given by 12-13q and ...
A: TI curve= 12-13q P=6 q=4
Q: 3) Consider a commodity X whose demand function is 100-2P and which has a perfectly elastic supply c...
A: Given; Demand function; Q=100-2P Supply= Price ( It is given that supply curve is perfectly elastic...
Q: Which of the following is TRUE about interest rates offered by financial Intermediaries? * A.The int...
A: When talking about financial intermediaries, they are the institutions that provide financial assist...
Q: Provide 3 ways showing how you, as a student, will adjust to college life. - please give detailed an...
A: college life college life is the most crucial point in the life of a student where he/ she suddenly ...
Q: Suppose that a market is described by the following supply and demand equations: Qs = 2P, Qd = 300 P...
A:
Q: Ms.Mitchell, the CEO of CrunchOs, noticed her famous cereal brand has a demand and supply curve of p...
A: According to the question, Ms.Mitchell, the CEO of Crunch Os, noticed her famous cereal brand has a...
Q: MC MB 25 50 75 100 Trucks (per day) i. What is the marginal benefit and marginal cost of producing 2...
A: An optimal level of production occurs at MB = MC. MB decrease as output increases MC increases as ou...
Q: The shape of rectangular hyperbola is made by
A: To find : How is shape of rectangular hyperbola made
Q: Cisco, Inc., has a proposal from the Engineering Planning Division to invest Cisco retained earnings...
A: Present Worth: 4,400,000 + 2,900,0001.18+ 108,4421.111 P= 4,400,000+1352871.40261+38008.2594476P= 57...
Q: If a monopoly firm sells a product with price $100, whose marginal cost is $30, what is the price/ m...
A: Please find the answer below.
Q: are some government strategies u ase exports?
A: Outflow of goods and services from one country to another is known as export.
Q: Suppose that there is a large price increase for all types of salad dressing. What would you expect ...
A: Cross price elasticity measures the percentage change in quantity demanded of one good due to change...
Q: 1. The opportunity cost of the good is: a. greater during periods of raising prices b. equal to the ...
A: Opportunity cost Opportunity cost is the cost of next best foregone.The opportunity cost of a specif...
Q: The Founding Fathers envisioned a strong Congress and weaker President because they were afraid that...
A: The Founding generation established Congress as a national legislature to make laws for the country....
Q: Which of the following is a tool of the Federal Reserve’s monetary policy? Group of answer choic...
A: The policy through which the central bank of the nation takes action for influencing the amount of c...
Q: You are given the following information about an economy: ...
A: Answer is given below
Q: The government imposes a lump sum tax. What happens to the budget line? (Select all that apply). The...
A: Budget Line is the locus of different combinations of two goods that a consumer can purchase with gi...
Q: 1) If investment spending depends on GDP, this is called induced investment? T/F 2) A change in ...
A: When a good is manufactured with the use of factors of production, cost takes place for producing t...
Q: he policies of OPEC+ have nothing to do with the surge in crude prices, two sources in the group sai...
A: OPEC which is a oil exporting petroleum countries is a Big cartel which make decision about Producti...
Q: Economic profit is
A: To find : What is economic profit
Q: You own a printing firm. Two of your senior managers provide you with advice. The first manager stat...
A: The process of combining multiple material and immaterial inputs (plans, know-how) to generate a con...
Q: A. Each week, Gavriel buys cheese (C) and sausage (S) which provides her a utility of U- 5th root of...
A: As per the question, utility U= 5th root of (C3S2) which can be represented as U=(C3S2)15. Her weekl...
Q: 4 Assume that a person's utility over two goods is given by U(g1; g2) = g1 + ln g2. The price of goo...
A: Answer: Given, Utility function: Ug1,g2=g1+lng2Price of good g1=p1Price of good g2=p2Marginal rate o...
Q: 1. Refer to the following demand and supply values of rice at different prices. Calculate equilibriu...
A: The curve that depicts the various quantities being demanded by individuals at different price level...
Q: Q3. There are two firms selling differentiated products. Firm A faces the following demand for his p...
A:
Q: 9. Economics is the study of
A: To find : What is economics.
Q: 5. Japan and the European Union have flexible exchange rates. Suppose Japan attracts an increased am...
A: Answer: If Japan sees increased foreign funds then the supply of loanable funds will increase in Jap...
Q: Suppose that the University of Alabama and Clemson are making spending decisions for theupcoming yea...
A: Meaning of Decision Theory under Nash Equilibrium: The term decision theory refers to the situatio...
Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that ...
A: The perfect competitive firms sell homogeneous products which means other firms also sell the same t...
Q: outcome is a Nash-Coumot equilibrium, why did the prices rise less than in proportion to the firms r...
A: Oligopoly market is characterized by the presence of the few dominant firms. These firms have some m...
Q: In the United States, grain has many uses. These include food (directly and indirectly), fuel, and e...
A: Answer:- Nature negatively affects the dirt in light of the fact that the parts effectively dry it i...
Q: Demand Equation: Q= 2500- 5/6P Supply Equation: Q= 5/2P Graph the equations and determine the pric...
A: QD=2500-56PQD=2500-0.8PNow,2500-0.8P=00.8P=2500P=3125QS=52PQS=2.5PNow,2500-0.8P=2.5P3.3P=2500P=757.5...
Q: Which of the following statements is FALSE? a.) Economists seek to apply the scientific method to s...
A: Economics is the study of that branch in social science which deals with the production and distribu...
Q: Suppose a government program guarantees $ 2,000 a month in income, even for those who do not work at...
A: Yes the correct answer is : "While the goal may be to reduce poverty , people rarely respond to the ...
Q: National income is equal to Multiple Choice rent + transfer payments + interest + wages
A: National income is the sum of factor income earned by the residents of the country over the given pe...
Q: a) Derive the goods market demand curve in terms of the output (Y) and the exogenousvariables:c0,c1,...
A: Consider a model of goods market that is characterized by the following equations:- Aggregate deman...
Q: rue or False 1. A cooperative is a business organization owned by a group of individuals and is op...
A: In sole proprietorship, there is only a single owner of the business/company. So, all the risks of t...
Q: 10. The Solow model tends to over-predict income per person in poor countries. *
A: Introduction Solow model focus on long run growth. The main component of the model are saving and in...
Q: Which of the following is NOT TRUE about Financial Intermediaries? * A. Financial Intermediaries are...
A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to ...
Q: Consider a two-sectors (1, 2), two-inputs (L, K), production side of general equilibrium economy, wi...
A: Production Possibility Curve - This curve tells about a choice of output due to the limited availabi...
Q: 14. The labour force participation rate is the
A: To find : What is rate of labor participation.
Q: Which of the following is a FALSE statement regarding a Perfect Competition market? There ar...
A: Characteristics of a Perfectly Competitive market: 1) Large number of buyers and sellers: There are ...
Q: Suppose that this year, the money supply grows by 6%, velocity increases by 1%, and real GDP increas...
A: By definition, we assume that the growth rate of price level is the inflation rate. growth rate of t...
Q: Approximately a thousand people enjoy a local beach. The utility each person gets from the beach is ...
A: People who enjoy beach = 1000 Utility, U = x x people contribute to cleaning the beach The total cos...
Q: Give 7 things you need to do to become a better student. Explain each briefly. Give an introduction ...
A: Student:-A student is a person who is a learner and enrolled in a school or other educational instit...
Q: Ceteris Paribus means
A: To find : What is ceteris paribus
Q: Identify three (3) “utility” in the dentistry field. Explain the significance of your Knowledge on i...
A: Indifference Curve refers to the curves that represent combinations of two goods or services of an i...
Q: Q2) The production function of a small economy is Y=K0.3L°7. K is the amount of capital (land), L is...
A: (a) Production function Y = K0.3 L0.7 Where K is land and L is labor ---------------------------- ...
Q: 1. Unit cost is another name for
A: To find : What is another name for unit cost.
Q: assume elsa has current income of $50000 and expects income of $60000 next period. interest rate is ...
A: Given that: Income in period 1 (m1) = 50000Income in period 2 (m2) = 60000r = 6% or 0.06 she desired...
1) Suppose MPL = 0.5 ∗ (q/L) and MPK = 0.5 ∗ (q/K). In the long run, the firm will hire
equal amounts of capital and labor
A) all of the time.
B) only when w = r.
C) only when w = 0.5 ∗ r.
D only when w = 2 * r.
E) at no point in time. .
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose, the demand and supply curve in a US manufacturing firm are provided as follows: ES = 20 + 2w ED = 70 − 3w where E is the level of employment and w is the hourly wage. Let’s assume this firm shows the representative wage of the manufacturing industry. Suppose the price of each unit of capital used in this industry is $25. The price of output is constant at $50 per unit. The production function is f(E,K) = E½K ½ , so that the marginal product of labor is MPE = (½)(K/E) ½ If the current capital stock is fixed at 1,600 units, how much labor should the industry employ in the short run? How much profit will the industry earn?A firm uses labour, L and capital K, to produce a single product, X. capital is fixed but labour is variable. The firm’s production function is: X=-0.2L3 + 18L2 + 1620L. Where X is the number of units of the product per week, and L is the number of persons employed. A t what weekly output is marginal cost equal to average variable cost? if the price of the product is $0.20 per unit, what is the maximum weekly wage that the firm would pay rather than close down?A widget manufacturer has a production function of the form q = 6L + 10K . If the wage rate (w) is $4 and the rental rate on capital (r) is $5. Are the returns to scale increasing, constant, or decreasing for this production function? What cost minimization combination of K and L will the manufacturer employs to produce 300 units of output? Suppose that the price of capital increases to $7 per unit. If manufacturer continues to produce 300 units,what cost minimization choice of inputs capital and labor should the firm used. Suppose that the capital input is fixed at K = 3 units in the short run, what is the short run total cost function with q
- Goleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = M.5 B.5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of managers decreases to $30 per hour and the wage of brewing assistants remains constant. Is this result consistent with your intuition?The production function for a firm isq=−0.6L^3+18L^2 K+10Lwhere q is the amount of output, L is the number of labor hours per week, and K is the amount of capital. The wage is w = $100 and the rental rate is r = $800 per time period.a. Using Excel, calculate the total short-run output, q(L), for L = 0, 1, 2, …, 20, given that capital is fixed in the short run and K = 1. Also calculate the average product of labor; APL, and the marginal product of labor, MPL.MPL=−1.8L^2+36L+10 b. For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost, AC; and the marginal cost, MC. Using excel, draw the AVC, AC, and MC curves in a diagram.A purely competitive firm has a single variable input < (labor), with the wage rate. W0 per period. Its fixed inputs cost the firm a total of F dollars per period. The price of the product is P0. (a) write the production function, revenue function, cost function, and profit function of the firm. (b) what is the first-order condition for profit maximization ? Give this condition an economic interpretation. (c) What economic circumstances would ensure taht profit is maximized rather tahtn minimized?
- The production function for a firm is q=−0.6L^3+18L^2 K+10Lwhere q is the amount of output, L is the number of labor hours per week, and K is the amount of capital. The wage is w = $100 and the rental rate is r = $800 per time period.a. Using Excel, calculate the total short-run output, q(L), for L = 0, 1, 2, …, 20, given that capital is fixed in the short run and K = 1. Also calculate the average product of labor; APL, and the marginal product of labor, MPL. MPL=−1.8L^2+36L+10 b. For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost, AC; and the marginal cost, MC. Using excel, draw the AVC, AC, and MC curves in a diagram.Given: Q = -0.0250 L3 + 1.5 L2 a) Derive the AP and MP equations (4 pts) b) What is the level of Q where AP and MP of labor is maximum? 2. The chief economist for Lanux Corporation, a large appliance manufacturer, estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC = dollars per television and Q = number of vacuum cleaners produced each month. Total fixed cost each month is $180,000. The following results were obtained: DEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 19 0.7360 39.428 0.0001 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 191.93 54.65 3.512…Assume that the production function of a firm is Q = L0.23K0.10. L = labor, K = capital.Referring to the information given,i. Calculate the technical suit replacement rate (MRTS) of the firm? ii. Calculate the value and explain the form of return according to the scale (return to scale) of the firmthe?
- The production function for a firm is: q=-0.6L3+18L2K+10L where q is the amount of output, L is the number of labor hours per week, and K is the amount of capital. The wage is w = $100 and the rental rate is r = $800 per time period. a Using Excel, calculate the total short-run output, q(L), for L = 0, 1, 2, …, 20, given that capital is fixed in the short run and K = 1. Also calculate the average product of labor; APL, and the marginal product of labor, MPL. b For each quantity of labor in (a), calculate the variable cost, VC; the total cost, C; the average variable cost, AVC; the average cost , AC; and the marginal cost, MC. Using excel, draw the AVC, AC, and MC curves in a diagram. Hint: you will not be able to solve the total product curve for L as a function of output. So, instead construct a table, See the headings. Use this definition ΔTC/Δq…rofit is found as total revenue (TR) minus total cost (TC). With that in mind, let us now consider the possible profits for the firm that we looked at in assignments 7 and 8, where the firm’s capital is fixed at 2 units and where the cost of capital is $40 per unit per period, while the cost of labor (or wage rate) is $30 per unit of labor per period and the firm has the following short run production function: Labor: 0 1 2 3 4 5 6 7 8 9 Output: 0 6 24 60 120 170 210 240 260 270 Now, let us further assume that the firm is perfectly competitive (i.e., it is a price taker) and that it can sell each unit of the output that it produces for $3 [remember, for price takers, the price (P) is also the marginal revenue (MR)]. (a) Use this information set up a diagram (i.e., an excel chart) that shows total cost (TC) and total Revenue (TR) of the firm per period in the short run with the level of output on the horizontal axis. (b) Also, use…F (L, K) = L0.2K0.7， The wage rate (price per unit of labour) is w = 2 and the capital rental rate (price per unit of capital) is r = 7. Does this production function exhibit increasing, decreasing or constant returns to scale? Explain. What is the marginal productivity of labour and the marginal productivity of capital for (L,K) = (1,1)? Would a firm (which minimises costs) use this combination of labour and capital? Explain. If your answer is yes, then what would be the quantity of production for which the company would use this combination?
