Suppose that a firm has the following production function Q(K,L) = AKL² – BL³ where K represents capital level and L represents labor level. Assume that the company has 1200 units of capital, i.e. K=3000, and the manager of the company, hires you as an economist. Your tasks are listed below.

Q: Suppose that we have a linear production function Q = 10L + 2K. (Quantity = labor + capital) If the…

A: We are going to find Marginal Rate of Technical Substitution to answer this question. Always…

Q: Calvin’s Furniture store also has a Production function of TP = 90K2 − K3 1. Optimize the Marginal…

A: TP=Q=90K2-K3     where Q= Total Quantity of production, capital =90 which is fixed and Labour= K…

Q: • A firm's production function is initially Q = VKL Over time, the production function changes to Q…

A: The initial production function is: The marginal products are:

Q: If a firm is operating on the production function, then workers A. must be putting forth maximal…

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

A:

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: Consider the following production function: Q 3K + 6L where K represents Capital, L represents…

A: Since you have posted multiple question, as per answering guideline, we will solve first question…

Q: Given the production function for labor and capital: Q =L^½(K^V½), and q = 100. If the firm wants to…

A: ANSWER   The production function relates the maximum amount of output that can be obtained from a…

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: 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: A firm has a production function Q in function of K and L that can be written as follows: Q = 2/K/L…

A: Here, we have Production function,  Q=2KL or Q=2K0.5L0.5 Rental rate of a unit of capital is given…

Q: A firm has a short run production function: Q = 16L^(1/2) where q = units of output, L = units of…

A: Answer: Given, Production function: Where, Q=units of output and L=units of labor The expression…

Q: In a few words, name the reason that production function q = f(L,K) might have diminishing marginal…

A: Answer in step 2.

Q: Consider the following production function: Q = K² L²

A: ‘Economies of scale’ is nothing but the cost advantage that a firm obtains due to its production…

Q: Assume a Cobb-Douglas production function in which the share of capital is a = 0.25 and the share of…

A: In production, if the rental cost of capital is more then the result will be that the capital that…

Q: If the production function of a firm is given by Q= K2L3  and the input prices are  r= birr 8 per…

A: Production function yields the technical relationship between the units of factors of production…

Q: When production function  q= 0.4 LK+ 3 L^2K- 0.07 L^3K and  K= 12 are given, find amount of labor at…

A: The production function in short-run will be given as below if the value of K (capital) = 12 (fixed…

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: 1.    A firm’s production function is Q = L1/2 K1/2 They have 16 units of capital (which is fixed in…

A: Inputs are resources that benefits the production unit in developing goods and services. In the…

Q: Production Point Capital (K)  Labor (L) Output (Q) A 1 1 2 B 2 2   C 1 3   D 2 4   E 1 5   F 2 6   G…

A: According to the guidelines, we will answer the first question for you, for the other question to be…

Q: If the form of the production function is a Cobb-Douglas function, do diminishing marginal products…

A: Production function is used to explain the connection between input resources and output such as an…

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: Consider the production function f (L, K) = LVK

A:

Q: Determine the returns to scale of this production function: F (x1, x2) = [xỉ + x]\/2 A. Constant…

A: If change in inputs changes output by an equal proportion, production function has constant returns…

Q: Suppose the production function is given by Q = f(L, K) = 2L'/3 K!/2. If 5 units of capital (K) and…

A: We have  Production function: Q=2L1/3K1/2        .... (1) We will find value of MPL and MPK at K=5…

Q: Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when…

A: Average Product of Capital = Total Output/Capital Q = 3K + 4L We know K=5 and L=10 So Q = 3*5 + 4*10…

Q: y = F(L,K) = min(L,3K) Show if the leontie

A: Here, we have to find constant returns to scale.

Q: The production function has the following form q= K + 2L where q is output, K is capital input and L…

A: Answer: Given, Production function: q=K+2Lw=5v=2q=6 units The following condition must satisfy to…

Q: Which of the following would be a source of economies of scale? the quantity of labour more…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output thus…

Q: Consider

A: Constant return to scale refers to when there is equal increase in output to increase in input…

Q: If the production function of a firm is given by Q=K2L3 and  the input prices are r = Birr 8 per…

A: Given:  Production function: Q = K2L3 r = 8 per unit  w = 2 per unit  Total Output = 240

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

A: A firm optimal production occurs at the following point: (MPL / MPK) = (w /r)…

Q: Consider a production function Q = (K.5 + L.5) 2    Does this production function exhibit…

A: Q=(K0.5+L0.5)2..... (1)Now, In order to check for returns to scale, multiply the variables K and L…

Q: Assume the following production function for maize: Q=3K^1.2 L^0.5, where Q is the number of bags of…

A: We are going to find MRTS, factor intensity and returns to scale to answer this question.

Q: The Cobb-Douglas production function for a company building widgets is given by Y = AL K*- where Y…

A: Given: β = 0.81Y = ALβK1-β

Q: Which of the following is incorrect when there is one input (labor) in the production? The…

A: Answer: The production function is concave when its slope (marginal product of labor) falls. So the…

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: Q=L3/4.K1/4 Find out the optimal quantities of the two factors using Lagrangian method, if it is…

A: Production function is  Q=L3/4×K1/4 Wages = Rs.6 Capital = Rs.3 Total Cost = Rs.120 Find: Optimal…

Q: The Cobb-Douglas production function is a classic model from economics used to model output as a…

A: a) For the formulation of the model: For the max = 6 with L0.75 & C0.25 P(L,C) = 6L0.75C0.25…

Q: The simple (and silly) production function q = K/2 L-/2 (where q is output produced, and K and L +…

A: a production function gives the technological relation between quantities of physical inputs and…

Q: A firm produces quantity Q of breakfast cereal using Labour L and material M with the production…

A: A firm has constant returns to scale when change in inputs is equally proportional to change in…

Q: Consider the Cobb-Douglas production function: 1. Derive the conditional input demands. 2. Derive…

A: Given  Production function: f(x1,x2)=Ax1αx212-α                ... (1) Let P1 and P2 be the input…

Q: In the short run, we assume that capital is a fixed input and labor is a variable input, so the firm…

A:

Q: Which situation below describes the increasing returns stage of the production function? a. Hiring…

A: Increasing returns to scale is a situation when the fixed factors are abundant compared to the…

Q: A firm produces according to the following production Function: Q= K^0.4L^0.5. MCK is $10 per K, and…

A: Returns to scale is the increase in production due to same unit increase in the inputs, labor and…