Suppose that firms face the following production function: Q = L+7* +K+/*. Suppose also that price of labor (L)=w=8 and price of capital (K)=r=1. If the firm wants to produce 6 units of output, what is the optimum amount of labor, capital and associated cost respectively?
Q: Jerry plans to buy a new Bluetooth headset. He knows that the same product is offered in different…
A: It would cost an extra $1 to search once more, and he would only have two opportunities to get in.…
Q: A perfectly competitive firm faces a O supply chain issue. O demand curve that is inelastic. O…
A: A perfectly competitive firm is a price taker, which implies that a perfectly competitive firm takes…
Q: What are various transport investment projects currently underway in South Africa.
A: The various transport investment projects currently underway in South Africa are the followings:…
Q: sing the Frieman-Phelps expectations-augmented Phillips curve, if actual and expected inflationare…
A: If inflation has remained stable for several years and there is no sign of monetary policy shift.…
Q: Which of the following are features of monopolistic competition? Choose all that apply. A. Products…
A: Monopolist competitive firm is the market structure in which there are large number of sellers…
Q: c. National-Income model: Closed economy i. Aggregate expenditure: AE = C +I + G Note: Exogenous…
A: Natinal income is the total factor in ome earned by the country's normal residents in an accounting…
Q: Relate the permanent income hypothesis to the Ricardian equivalence theorem.
A: Ricardian equivalence is a monetary hypothesis that says that supporting government spending out of…
Q: The $5-bill in your pocket (Canadian) is: (check all that apply) Select all that apply: O a. A…
A: A 5$ Canadian currency in your pocket act as liquid asset for me, but at the same time a liability…
Q: This is the balance sheet of the bank, which is the only bank in the economy. The reserve ratio is…
A:
Q: 25. While looking at an economic cycle you can find five different phases, respectively which will…
A: The cyclical movement of an economy as it swings from growth to recession and again is known as an…
Q: Two firms, each in a different country, sell homogeneous output in a third country. Government 1…
A: Introduction We have given two firms, one is leader and other is follower. Let's start with firm 2…
Q: ct one: Households and firms can borrow anyways, even at higher interest rates, so there is no p The…
A: While government spending neglects to increment generally total interest on the grounds that higher…
Q: You are considering taking an econometric software course: R or STATA. The tuition is $1000, and…
A: There are two alternative options for the student - => To buy any course now without waiting…
Q: O d. reduce; higher; higher
A:
Q: What are the annual payments necessary to pay a P1,000,000, 12-year loan if the loan rate is 8 %? *…
A: The term "annual payment" refers to all payments made on a yearly basis. Because of the nature of…
Q: You are the manager of a local monopoly that serves fresh oysters to restaurants. A typical…
A: Given: inverse demand function: P = 300 − 35Q cost function is C(Q) = 20Q.
Q: According to the figure below, Rightward AS shifts cuse leftward Philips curve shifts PC. PC, 6. 1.…
A: Given Philips curve 1 and PC2
Q: To pay off $75000000 worth of new construction bonds when they come due in 25 years, a water…
A: Working quarterly: Number of quaters (n) =25*4=100Rate of Interest (r) =6.44=1.6%Future Value (FV) =…
Q: The flow of funds into and out of the different sectors of the economy results to a particular…
A: When talking about flow of funds, it explains the movement of funds or goods and services from one…
Q: Consider the following game Player 2 E N T 4, 4 0, 2 Player 1 M 2, 0 2, 2 3, 0 1,0 a) Find the the…
A: Using the best response method we can find the PSNE and taking positive probabilities p1, p2 and…
Q: 22. Which of the following would cause the AD curve to shift to the right? O The governm rais income…
A: The curve that depicts various quantities of goods and services to be produced at different levels…
Q: How are the unendorsed HO-3 and the HO-5 similar? А. Both are designed to cover condominiums. В.…
A: HO-3 policy:- In the instance of actual harm, a homeowners insurance (HO-3) policy protects the…
Q: Using the three-equation New Consensus model, describe how zero output-gap can be achieved using…
A: (Q) Using the three-equation New Consensus model, describe how zero output-gap can be achieved using…
Q: 4) An engineer takes a loan of 50,000 is to be paid over 10 years with equal monthly payment. The…
A: Nominal interest rate is the interest rate before taking inflation into account, in contrast to real…
Q: The following regression was run using a sample of 587 women living in Kenya. The variable goats is…
A: The regression states that the relationship between the mean value of one variable (dependent)…
Q: solve c and d part only...hand written
A: Gross domestic product is the summation of consumption, investment, government expenditure and net…
Q: Table 17-1 Imagine a small town in which only two residents, Celia and Venya, own wells that produce…
A: The Nash equilibrium is a situation in which each player chooses an optimal strategy given the…
Q: b) Find the values of y when Uj = 4 and when U2 = 6 for x-values of 0, 1, 2,..., 8. The utility…
A: Utility function can be defined as the measure for a group of goods and services preferred by…
Q: The frequency with which bills are passed within an economy is also known as the: velocity of money…
A: Money refers to the commodity that can be used as a store of value and at the same time it acts a…
Q: 1. Desirable characteristics for money do not include Group of answer choices B. portability A.…
A: In an economy, money can be used as the medium of exchange and anything can become money if they…
Q: give 10 economic issues
A: Economic issues refer to those problems which are faced by the entire economy due to some economic…
Q: When a check clears, money created by the Federal Reserve System is transferred from one bank to…
A: In an economy, when bank clears a check it tries to connect with another bank to exchange money…
Q: b 28
A:
Q: policy ineffectiveness paradigm
A:
Q: In Country X he population 100 people, of which 50 are working, 10 ae looking for wok Sare too young…
A: Given: Population = 100 people Employed = 50 People who are looking for work = 10 Younger People…
Q: A man borrowed an amount of P684.255 to bank that offers an interest rate of 8.816% compounded…
A: Given, Principle amount (P) =684.255 Rate of interest (r) =0.08816 compounded continuously Time…
Q: 3. Some reasons why resources could be allocated inefficiently by the market are negative…
A: Externalities occur when one or more people's consumption and/or output inadvertently alter one or…
Q: A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The…
A:
Q: 5. The demand and supply curves for a firm's product are estimated to be: 20d 3- P Q, = 1+ 0.5P…
A: Answer;
Q: Figure 34 Quantity (units) 34. In Figure 34, The demand curve in the figure above illustrates the…
A: The elasticity of demand is a measure of sensitiveness of quantity demanded because of a change in…
Q: Use the DuPont cellophane antitrust case to illustrate and explain in detail how the definition of a…
A: Although the term "market" is not directly stated in the Sherman Act, it plays a critical role in…
Q: In 2017, the median price of electric vehicles in the US was 64.300 thousand dollars/car and 199.826…
A: Answer: Given, Price of vehicles in the US in 2017 = 64.300 thousand dollars/car Car sold = 199.826…
Q: Assume that JMD $1.00 is equivalent to GYD $2.00, suppose that the GYD depreciated by 10%, what is…
A: The measure that depicts the value of one currency being measured in terms of another currency for…
Q: As the elasticity of demand for labor increases, the more likely a labor union will: place its…
A: Answer: If the elasticity of labor demand increases means a small change in wages now will lead to a…
Q: Kim has $35057 to invest for 10 years. She has the following options: [A]term deposit at 5%…
A: One of the most important aspects of diversification is the inclusion of a wide range of…
Q: lumber mill in BC, Canada cut Canadian trees into ear, but ended in inventory only to be sold this…
A: Below points are to be considered: *Trees were cut in last year. *Sold for $322715 in the current…
Q: If a sample of size 30 is selected, the value of A for the probability P(t> A) = 0.01 is: Select an…
A: ANSWER; Option (c) is correct (2.462)
Q: Usuing the Monetary Intertemporal Model explain the equilibrium effects of a decrease in CURRENT…
A: A reduction in the current capital stock has a significant impact on labor demand. It also affects…
Q: You are a convenience store owner and you want to sell a chocolate bar. Its wholesale price is 60…
A:
6
Step by step
Solved in 2 steps
- Suppose, for producing 250 tables, the total cost of production is R.O 8,750. Determine the average cost of production. a. R.O 42 b. R.O 53 c. R.O 24 d. R.O 35Profit 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…Suppose that a firm’s production function is described by Q = 60L – L2 where Q measures units of output and L is the number of labour hours. Suppose that output sells for $2 per unit and the cost of labour is MCL = $16 per hour.a) How many hours of labour should the firm hire?b) How much output should it produce?c) How much profit would the firm get if choosing optimally?
- Suppose that the production function for a phone is ? = 20K^0.5L ^0.5 . The marginal product of labor is 10(k/l)^0.5 , and the marginal product of capital is 10(L/K) ^0.5 . Suppose that labor can be hired for $6 and capital can be hired for $9. a. When the firm is producing 49 units at lowest cost, what will the firm’s marginal rate of technical substitution be? b. Solve for the lowest-cost combination of labor and capital that will allow the firm to produce 49 phones. Fractional units of labor and capital are allowed. c. What is the minimum cost of producing 49 phones?For producing 200 chairs, the total fixed cost is R.O 2,000 and total variable cost is R.O 1,500. Find the total cost of production. a. R.O 200 b. R.O 1,500 c. R.O 2,000 d. R.O 3,500Please no written by hand The estimated production function is Q = 12K ½ L1/4 The firm pays workers (L) and rents boats (K) in order to produce fish. Currently, the company has no fixed inputs and pays $12 per hour for labour (w) and $16 per hour for capital (r). The quantity of fish produced per day (Q) is 153. A. Derive the conditional input demand functions for labour (L) and capital (K) for IFC. B. What is cost-minimizing amount of labour and capital that IFC should hire and rent? C. Determine the minimum cost of producing 153 units of output? D. Use the isocost and isoquant to illustrate the optimal choice of this firm.
- Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. Spreading overhead is the process of dividing total fixed costs by more units of output, which implies that average fixed cost declines as quantity declines. Diminishing returns, or decreasing marginal product, imply diminishing marginal cost. At the output level where MR = MC, if the corresponding P is above AVC but below ATC, the loss-minimizing move is to shut down or stop production. A firm that is breaking even, or earning a zero level of profit, is one that is earning exactly a normal rate of return, which implies that new investors are not attracted, but current ones are not running away either. Zero economic profit implies zero accounting profit. In the long run, if price is below average total cost, then it pays to just shut down. The shapes of long-run cost curves follow directly from the assumption of a fixed…A firm produces output according to the following production function:Q = F (K, L) = 4K + 8L(a) How much output is produced when K = 2 and L = 3?(b) If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the costminimizing input mix for producing 24 units of output?(c) If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour,what is the cost minimizing input mix for producing 24 units of output?A firm produces output according to the production function:Q = F(K, L) = 4K + 8L.a. How much output is produced when K = 2 and L = 3? unit(s)b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor: c. If the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour, what is the cost-minimizing input mix for producing 32 units of output?Capital: Labor:
- A firm operates with the following Cobb-Douglas production function where Q is output, L is labor hours per week, and K is machine hours per week. Q = 5(L1/3K2/3) Cobb-Douglas Production Function The firm intends to produce 5,000 units of output per week by contracting employees for $40 per hour and renting machinery for $10 per hour. 1) Determine the cost minimizing combination of labor and capital for the firm 2) Based on your solution in part 1, calculate the firm’s total cost of producing 5,000 units of output per weekSuppose that a car dealership wishes to see if efficiency wages will help improve its salespeople’s productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day.a. Suppose that if the wage is raised a second time to $40 per hour, the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold? $______ per vehicleb. If the firm’s goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour? $______ per hourc. By contrast, which salary maximizes the productivity of the car dealer’s workers (cars sold per worker per day)? $_______ per hourMargeʹs Hair Salon production function is Q = f(K, L) = K0.5L0.5 where K is the number of hair dryers and L is the number of labour hours she employs. 2.1 Prove, with the aid of mathematics, the type of returns to scale exhibited by this production function. (2) 2.2 At the moment, Marge uses 16 labour hours and 16 hair dryers. Suppose that Marge can use any amount of either input without affecting the market costs of the inputs. If Marge increased her use of labour hours and hair dryers by 10%, how much would her production increase? (2) 2.3 Increasing the use of both inputs by 10% will result in Margeʹs costs increasing by exactly 10%. If Marge increases her use of all inputs by 10%, what will increase more, her production or her costs? (2) 2.4 Given that Marge earns R12.50 for each unit produced, do her profits go up or down when she increases her input use by 10%? (4)