Suppose that the output Q (in units) of a certain company is Q = 75K1/3L2/3, where K is the capital expenditures in thousands of dollars and L is the number of labor hours. Find aQ/aK when capital expenditures are $2,197,000 and the labor hours total 4913. (Round your answer to the nearest whole number.) aQjak = units per thousand dollars Interpret aQ/aK. If labor hours remain at 4913 and K increases by $1000, Q will increase about units. Find aQ/aL when capital expenditures are $2,197,000 and the labor hours total 4913. (Round your answer to the nearest whole number.) ƏQIƏL = units per labor hour Interpret aQ/aL. If capital expenditures remain at $2,197,000 and L increases by one hour, Q will increase about units. Need Help? Read It

Suppose that the output Q (in units) of a certain company is Q = 75K1/3L2/3, where K is the capital expenditures in thousands of dollars and L is the number of labor hours. Find aQ/aK when capital expenditures are $2,197,000 and the labor hours total 4913. (Round your answer to the nearest whole number.) aQjak = units per thousand dollars Interpret aQ/aK. If labor hours remain at 4913 and K increases by $1000, Q will increase about units. Find aQ/aL when capital expenditures are $2,197,000 and the labor hours total 4913. (Round your answer to the nearest whole number.) ƏQIƏL = units per labor hour Interpret aQ/aL. If capital expenditures remain at $2,197,000 and L increases by one hour, Q will increase about units. Need Help? Read It

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

A firm has a production function of q=2(LK), where the L represents hours of labor, K represents hours of machine usage and q represents the hourly production volume. Currently the price of labor is $20 per hour and the price of capital is $40 per hour. a. When the production level is at 40,000 units, use the LaGrange process to determine how much they should spend on labor and capital. b. If the purchasing agent requests an additional unit (40,001st unit), what is the minimum price you should charge on that specific unit? (Note: determine this without re-solving the Lagrange problem itself.)
Why are the MC and MP inversely related to one another? While it is because as one increases, the other decreases, please explain the meaning behind the inverse relationship that exists between worker productivity and cost, in general.
Suppose the production function for widgets is given by q=KL+6L²-0.1L³ where q represents the annual quantity of widgets produced, K represents annual capital input and L represents annual labor input. A) Suppose K=10. At what level of labor input does average product of labor reach a maxiumum? How many widgets are produced at that point? B) Again assuming that K=10, at what level of labor input does MPL=0? C)Determine and show whether the production process exhibits law of diminishing returns.
Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if both capital and labor rise by 42%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
Consider a Cobb-Douglas production function, Y=zKα(Nd)1−α, with 0< α <1. (a) Show that this production function exhibits constant returns to scale. (That is, show that when K becomes xK and Nd becomes xNd, Y becomes xY for x > 0. (b) What is MPN? Is it increasing or decreasing in Nd?
Please refer to the table attached. The number of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units. Answer all of the question. Calculate APL and MPL. Graph APL and MPL. Do they have the expected shape? On your graph, identify the three stages of production.
Suppose the production function for widgets is given by KL – 0.5K2 – 0.1 L2 , where q represents the annual quantity of widgets produced, K represents annual capital input, and L represents annual labor input. (a). Suppose K=5; what is the average productivity of labor (Average product of Labor, MPL) (b). Suppose K=10; at what level of labor input does the total output reach the maximum?
Given the production function Q(K,L) = 96K^0.3L^0.7, find the MPK (i.e. Marginal Product of Capital) and MPL (i.e. Marginal Product of Labor) functions. Is the MPK a function of K, L, or both? What about MPL?
3) If we duplicate all the production factors of the production function f (L,K) = L 2/3. K1/3, where L are working hours, k the capital then the amount of product will be multiplied by: Choose one: A) 4 B) 2 C) 1 D) 8 E) 0.5
A firm produces output according to a production function: Q = F(K,L) = min {4K,8L}. a. How much output is produced when K = 2 and L = 3? 192 Numeric ResponseEdit Unavailable. 192 incorrect.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 8 units of output? Capital: 80 Numeric ResponseEdit Unavailable. 80 incorrect. Labor: 480 Numeric ResponseEdit Unavailable. 480 incorrect. c. How does your answer to part b change if the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour? multiple choice Capital and labor increase. It does not change. Capital increases and labor decreases. Incorrect Capital decreases and labor increases.
Assume that we have a Cobb-Douglas type aggregate production function in the form: Y=W.Kr.L1-r where : W=technology and r is standard share parameter of Cobb-Douglas production function. a. Find Marginal Rate of Technical Substitution (MRTS) between K and L. b. Why does (or does not) technology affects MRTS? Explain. c. Find output per effective labor; capital per effective labor (y=Y/WL and k= K/WL ). d. Find elasticity of substitution between K and L. Why does (or does not) the result different from previous question (Question-1) (Y=Ka.Lb) ?
In 2000, the country of Cobra Island has an initial level of capital set at 10 units. The population of Cobra Island is unknown, but we do know that it grows each year at some constant rate. The level of total income is 500 cobra dollars. Finally, the total production function of Cobra Island can be described as Y=10*L1/2k1/2 a)What is the initial population of Cobra Island? b)Let the wage of labor is 0.4, and the rental rate of capital is 0.6. The capital to labor ratio after two years (in 2002) is 50 while the amount of workers is 1000. The growth rate of capital is 6,970%. The growth rate of labor is 100%. Find the GDP of Cobra Island. c)How much labor is there in Cobra Island one year after the initial year (or in 2001)? d)The growth rate of income is 1,089%. Find the Solow Residual. Do not give the answer as a percentage