Suppose the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage the firm must pay is K20, while the marginal product of the last machine rented by the firm is 120 units of output per day and the daily rental price of the machine is K30. Is the firm maximizing output in the long run? If not what should be done?

Q: In short-run production with two inputs where land is a fixed input labor is a variable input, once…

A: Marginal product of labor (MPL) is defined as the change in the product of labors by employing one…

Q: Suppose you are the economic advisor of Jackie Brown Company, a perfectly competitive company that…

A: Given,   Output = 50 units per day  Price = $20 per unit  Variable costs (VC) = $24,000 per month

Q: Suppose the hourly wage is $20 and the price of each unit of capital is $2. The price of output is…

A: The firm maximizes profit by hiring the number of workers at a point where MPE = w/p

Q: X and Y are both factors of production. X's marginal product is 30 and Y's is 20. X is $5 each and Y…

A: A profit maximizing firm recruit the resource at the point where the marginal product of resource…

Q: Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5…

A: Answer: option c (LK=100) Explanation: Given, Production function: q=2LK Output level = 20 Along an…

Q: 0.2 2. A seller's production function is q = f(k,1) = (kl), w = v = 1, and the competitive output…

A:

Q: A short run production function of a competitive firm is given by Y=6L^(2/3) where Y represents the…

A: Given, Y = 6 L23 P = 3 W = 6

Q: 1) Miguel and Jake run a paper company. Each week they need to produce 1,000 reams of paper to ship…

A:

Q: Suppose that a price-taking firm’s production function is given by q = (K ½ +L ½) a short run supply…

A:

Q: Consider a production function of two inputs, labor and capital given by Q=LK. Let w =5 and r = 1,…

A: Production function refers to the function which shows the relationship between the final output and…

Q: A firm has a production function of Q = KL + L, where MPL = K + 1 and MPK = L. The wage rate (W) is…

A: A production function shows the relationship between the factors of production and the quantity…

Q: A firm produces output that can be sold at a price of $10. The production function is given by Q =…

A: The production function is given below.

Q: Q. 1. Use production function q(L, K) = L'"ª KV* and derive the followings: (a) (b) (c) (d)…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Consider the production function of Firm Z below utilizing inputs labor (L) and capital (K) in…

A: Given that, the production function, Z=K0.5L0.5 a fixed price for labor is 5 per unit a fixed price…

Q: A firm in a perfectly competitive market uses only workers to produce output. The relationship…

A: Answer: Given, Wages (variable cost) = $100 per worker Fixed cost = $500 (a). The formula to be…

Q: A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production…

A: In the short run capital is fixed and cannot be changed.

Q: Question: Orla manages a loom that produces flags (F) using thread (T) and dye (D) as inputs. Her…

A: Given  The production function of flags Q(T,D)=T1/2D1/21/2                 .... (1)

Q: 2. A firm producing hockey sticks has a production function given by: q = 2 vkl In the short run,…

A: Introduction Cost and production function of a firm has given. i) Given production function: q = 2…

Q: Question #3 Suppose a firm's short-run cost function is given by the following expression: C(q) = 10…

A: Given: The firm's short-run cost function is:  Cq = 10 + 14q - 6q2 + q3 To Find: Assuming this…

Q: Question 8: Profit maximization A firm's short-run production function is given with Q(K,L) = L02K².…

A: a)   An isoquant is the set of all the combinations of inputs which yield the same level of output.…

Q: Suppose a bakery’s fixed cost is the rent it pays for its location in a strip mall. Since firms have…

A: Fixed cost refers to those cost that are incurred without any production. In other words, fixed…

Q: Consider the following shortrun production function: (Q=100L- L*L), where Q is the output level and…

A: Given  Short-run production function:  Q = 100L - L*L  We can write this as  Q = 100L - L²  Price of…

Q: A manager hires labor and rents capital equipment in a very competitive market. Currently the wage…

A: Given wage rate (w) = $12Capital rent (r) = $8Marginal product of labor (MPL) = 60 unitsMarginal…

Q: Assume a firm is trying to maximize output subject to a budget and is currently in the long run…

A: The long-run is the timeframe when all expenses are variable. The long-run relies upon the points of…

Q: The short-run production function of a competitive firm is given by f(L)=6L2/3f(L)=6L2/3 where LL is…

A: Given:  Short run production function: f(L)=6L2/3 Cost of Labor = 6 price of output=3

Q: Suppose that John is a shrubber. As a master shrubber, he hires apprentices, L, at wage w and…

A: Production function : q = 10 K1/4L1/4 Price of labor : wager = w = 10 $/h  Price of capital : rent =…

Q: A production function for a good Q uses inputs of labor (L) and capital (K) and takes the form Q=LK.…

A: Cost  The number of goods and services necessary to produce or manufacture is referred to as the…

Q: Compute the long-run costs in the following table. The price per unit of capital is $50 and per unit…

A: Given: Price per unit of capital=$50 Price per unit of labor=$30 The durable goods that are being…

Q: The production function of Amazon burgers, producers of delicious burgers is given as Q =6L -0.4L².…

A: The production function illustrates the relationship between the quantity of output produced to the…

Q: he firm is a price taker for both bar stools (which sell for P) and workers (which can be hired at a…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Suppose a perfectly competitive firm uses labor and capital to produce. In the short run, the…

A: In the short run production decision depends on average variable cost as firms have to incur fixed…

Q: t Bob’s Burgers, each burger consists of exactly two buns x, one meat patty y, and one slice of…

A: Answer a) Q = min * (x / 2, y, z) λ, Q(λ*x, λ*y, λ*z) = Min  (λx / 2,λy, λz) =λMin(x/2, y, z) so it…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: Is it true that in a short-run production process, the marginal cost curve eventually slopes upward…

A: No, It's not valid because the MC curve is usually upward-sloping, and there exists a decrease in…

Q: Suppose the short-run production function for a restaurant producing a pack of food is given by: Q =…

A: First create the profit function and then it must be differentiated and must be put equal to zero.

Q: firm has the production function q=L2K The wage rate is w=55 and the rental rate is r=44. In the…

A: Production function, in financial aspects, condition that communicates the connection between the…

Q: Consider a firm that is perfectly competitive in the market for inputs and outputs. The firm hires…

A: Given information Production function F(L,H)=(AH)αLβ Q=(AH)αLβH= High skilled laborL=Low skilled…

Q: Suppose that in a perfectly competitive market, one individual firm uses two inputs: Labor (L) and…

A: Since the question you have posted consists of multiple parts, we will solve the first two parts for…

Q: Consider a competitive firm whose Cobb-Douglas production function is f (a1, x2) = V12, where r1…

A: A production function shows the relationship between the factors of production or inputs and the…

Q: Consider a firm that is perfectly competitive in the market for inputs and outputs. The firm hires…

A: Hi there , as per our guidelines we are only allowed to solve 3 sub parts of a question at a time .…

Q: .A company can sell its only product and in a perfectly competitive market at a price of 15. To…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A competitive firm has a production function described as follows. Weekly output is the square root…

A: Given ; Output is the square root of the minimum of the number of units of capital and the number of…

Q: Your firm has determined they use the following production function: q = E°K Assume the current wage…

A:

Q: A firm operates in a perfectly competitive output market and a perfectly competitive input market.…

A: Cost is minimized when production takes place where marginal rate of technical substitution is equal…

Q: Assume that a fırm has the following short-run production function: q (L) = 2L² – L³ The firm must…

A: Given, Short-run production function = q(L) = 2L2 - 1/2L3 Wages (w) per unit of labor (L) = 40…

Q: The main difference between the short run and the long run is that  firms earn zero profits in the…

A: There are two types of factor of production which are fixed and variable factor of production. The…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.