Suppose we have one consumer with a Cobb Douglas utility function for consumption, x, and leisure, R: u(x, R) = a ln r+(1-a) ln R. The consumer is endowed with one unit of labor/leisure and there is one firm with a constant-returns to scale technology: x = aL. Determine r(p, w) ane R(p, w).
Q: Fill in the blanks using the number that corresponds to the corect word or phrase in the word bank 1...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: narket. arket. arket. arket.
A: The buying of stocks, or corporate or government bonds is a way to invest in the capital markets.
Q: 0.41. What would be the effect of a price ceiling of (A) 7150 and (B) 780, in a market with the foll...
A: Given information: Demand equation: Qd=1000-5P ... (1) Supply equation: Qs=5P ...
Q: A reduction in the tax rate might lead to an increase in the growth rate of potential output if... O...
A: Generally a reduction in tax rate is considered the fiscal expansionary role of central government w...
Q: 1. Price searchers can set the price of their product. Does this mean that price searchers will char...
A: The detailed explanation for both parts is as follows:-
Q: If a process is in control, there is no natural variations in that process. True False
A: When the process is in statistical control then it is said that the process is in control. In the p...
Q: Consider the following demand for rounds in a golf club: Qd = 300 - 5p = p = 60 – 0.2Q %3D Assume th...
A:
Q: when it appeared the conventional Open Market Operations was not sufficient, monetary policy officia...
A: Monetary policy is a set of tools that a country's central bank can use to encourage long-term econo...
Q: 2. May purchased a new mobile phone and paid ₱10,000. This means that her marginal utility from this...
A: In a market, marginal utility refers to the amount of satisfaction gained by a consumer when he cons...
Q: Instructions: Adjust the sliders so that the vertical intercept of the supply curve is $20 and the v...
A: In economics, supply and demand refers to the relationship between the quantity of a commodity that ...
Q: The possibility that the failure of one bank affects the performance of other banks is called: syste...
A: When there will be a shortage of liquid occur within commercial banks then bank failure may occur. T...
Q: Critique on Concentric Ring Theory
A:
Q: US oil demand is given by P = 106 - 7* Q, where P and Q are oil price and oil quantity (in barrel) d...
A: Demand curve has a negative relationship with price.
Q: Your first job after graduation is in the statistical office of the small country Exemplia, where mo...
A: Basket size alludes to the number of items sold in a solitary buy. You ascertain the normal basket s...
Q: A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost ...
A: The answer is given below
Q: Applicant should be evaluated on the basis of their qualification and work experience, this will avo...
A: A code of ethics and professional conduct explains the ethical standards that guide a company's or o...
Q: In situations of exces demand, sellers might lower quality when they are unable to raise prices beca...
A: In a market, excess demand refers to the situation when there is more demand for goods and services ...
Q: Monopolistic Competition in the Long-Run FRQ Assume that two firms are operating with identical cost...
A: a) Long run equilibrium price and quantity for monopolist is PM & QM and for perfect competitor ...
Q: What are the options to combat adverse selection in Bismark systems? Choose all that apply. Restrict...
A: In a market, adverse selection refers to the situation when people have unequal information before m...
Q: Describe Weber’s Protestant ethic. Explain why Marxcould not have endorsed the relationship between ...
A: Weber’s Protestant ethic Weber claims in the book (The Protestant Ethic and the Spirit of Capitalism...
Q: what is the mode of production of "depostic"?
A: The mode of production refers to the way of generating output using input resources like raw materia...
Q: Questions: A) Detail and describe a decision that you made in the past that contradicts the assumpti...
A: Consumers try to maximize their utility in order to get maximum satisfaction, consumers, in general,...
Q: Assuming a 10 pcrcent interest rate compounded continuously, what is the present valuc of an annuity...
A: [a] Present value off annuity for the next five years:-PV = $500/[1+10%]^1 + $500/[1+10%]^2 + $500/[...
Q: In order for something to function well as a medium of exchange, it must be Oa. readily and widely a...
A: When talking about exchange of goods and services in an economy, it can be said that an individual r...
Q: 2. Consider a competitive market where there are two types of firms, Type A and Type B, with total c...
A:
Q: Fill in the blanks: 1) MR > 0 implies demand is price ___________. 2) If Price elasticity is > -1 ...
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: Dinotopia's Balance of Payments Account, 2014 (billions of S) CURRENT ACCOUNT Exports of products an...
A: Current account balance = Export of good and services – import of goods and services + Net transfer ...
Q: Suppose rules of the scenario change such that Village1 and Village2 are having a conflict on the ow...
A: Given, Two Players : Village 1 and Village 2Both Villages have Two Strategies : Not to Battle and T...
Q: Consider the issue of cigarette smoking. Please provide brief answers to each of the following quest...
A: The good which is being under-consumed in a free market due to its short-term view instead of long-t...
Q: Сopy A pgcconline.blackboard.com/webapps/assessment/take/launch.jsp?course assessment id%3 565711 18...
A: This fill in the blanks is relates to the theory of demand or law of demand which refers to the Inve...
Q: Fill in the blanks using the number that corresponds to the correct word or phrase in the word bank ...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: For each scenario below, explain how it will impact efficient turnover: (a) Universal healthcare is ...
A: Note:- Since you have put a multi-part question, we are providing you with the solutions to the firs...
Q: 1.Discuss how the factors of production lead to economic growth. Be sure to provide an example that ...
A: Economic growth is defined as the process by which the economy's final goods and services rise. An i...
Q: 2 (a) Why would a firm that incurs losses choose to produce rather than shut down?
A: In a market, there are different situations faced by the firms according to which they make their de...
Q: What is the distinction between the laws and of returns and the returns to scale?
A:
Q: Question is about Oligopoly: What happened when oligopoly is with and without production differentia...
A:
Q: A technology firm has determined that their lowest total cost production technology is $880. If mach...
A: The lowest total cost of production technology is $880 The machines cost is $100 The company has det...
Q: explain the reason why, the more developed a country is, the bigger business sector engaged in servi...
A: Concepts: 1)A developed country is an economy that enjoys a higher level of income and a better sta...
Q: What is the after-tax present worth of a chip placer if it costs $75,000 and saves $23,000 per year?...
A: Let's solve it step by step:- The tax rate is 54% thus, calculating it by considering it at every po...
Q: Explain the effects of the following statements to the equilibrium of supply and demand. Use supply-...
A: Equilibrium of supply and demand basically refers to a situation when the demand of a commodity is e...
Q: a) consider the following IS–LM model: C = c1(Y - T) I = b1Y - b2i M/P = d1Y - d2i Solve for equ...
A: Investment is negatively related to the interest rate. The rise in the interest rate causes the fall...
Q: Suppose that in normal years demand is represented by Case 2, and supply is represented by Case B. I...
A: PLEASE FIND THE ANSWER BELOW.
Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average ...
A: Marginal Cost is the additional cost incurred in the production of one more unit of output.
Q: Explain all three Circular flow economic models in one structure. ?
A: An economic model is a simplified depiction of reality that enables economic action to be observed, ...
Q: An industrial firm uses economic analysis to determine which of two different machines to purchase. ...
A: Answer :- Here, Assume minimum attractive rate of return is 8%. Given the above information we anal...
Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...
A: Cost is the expenditure incurred in the production of goods and services. It is the fixed cost and v...
Q: You decide to purchase a tractor for a net cost of $350,000. You finance this tractor for 5 years at...
A: Loan amount = $350,000 Interest rate = 5% Number of payments = 5 Payment frequency = Annually (1 yea...
Q: Adam Smith optimistic or pessimistic about the effect on society of the
A: The Industrial Revolution was the change to new assembling processes in Great Britain, mainland Euro...
Q: Please discuss the concept of the Balance of Payment account. Further, discuss the three components ...
A: BOP keeps track of all transactions that affect a currency's demand and supply. . Assess a country's...
Q: Savings by a land owner for future use of his property in General Trias Cavite to Cavite Savings Ban...
A: In an economy, there are different types of financial institutions that make economic activities. Th...
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- For the typical Cobb-douglas function, q=AKaLb whereas APL / APK = 1 , find out the marginal rate of technical substitution.Functions of several variables and partial differentiation, Unconstrained Optimization with two independent variables, Stationary points, Sufficient conditions for optimisation and saddle point Question 2: A firm has the production function Q=f(L,K)=100L0.5K0.5, where L is labour and K is capital. The wage rate is $5 per hour and the rental price of capital is $4 per hour and the price of the good is $1. 1. Find the marginal product (MP) of labour and capital (that is, fL,fK ) 2. Show that there are diminishing marginal productivities, that is, fLL<0,fKK<0 3. Find the cost function. 4. Find the amount of labour and capital the firm should hire to maximize profits. [Hint: write the profit function in terms of L and K and then take partial derivatives. Use the concepts involved in Question 1 above to determine the profit is maximised.] (Question 1: Let f(x,y)=2x2+x2y+y3+12y2. Find the stationary points and for each stationary point determine whether it is a maximum, minimum,…Suppose the production function of a firm is given as: Q = 5L + 10L2 – 2L3 Find the number of labors that would yield maximum values of TP, AP, and MP? Base on the results on “a”, provide a range of values that would reflect the three stages of production.
- Miranda is stranded on a desert island, and having quite the enterprising spirit, notices that the oceans are teeming with fish and immediately seizes upon this lucrative opportunity. She is endowed with a single fishing net, but is unable to make any more, so that her capital stock remains fixed at = 1. Hence the number of fish q she catches depends only on the hours of labor that she employs, by the production function q = f(k, l)=√√kl= √t Let the rental rate of capital be v = 0, the wage rate be normalized to w = 1, and let p denote the price of fish. a) Find Miranda's cost function c(q). (b) Write Miranda's profit maximization problem and state the first order condition. (c) Find Miranda's output supply qS(p), labor demand lc(p), and profit π(p) as functions of the price of fish.Suppose the long-run production function for a competitive firm is f(L,K)= L 1/3 K 1/4 , where L is the amount of labor and K is the amount of capital. The cost per unit of labor is w and the cost of capital is r, which is the interest rate. Fixed costs are zero. .a. Find the cheapest input bundle, i.e. amount of labor and capital, that yields the given output level of y. .b. Draw the conditional input demand functions for labor and capital in the L-y and K-y spaces. .c. Write down the formula and draw the graph of the firm’s total cost function as a function of y, using the conditional input demand functions. What is the relationship between the returns to production scale and the behavior of the total costs? .d. Write down the formula and draw the graph of the average cost and marginal cost functions, as functions of y.Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is given by U =2xy. If the per unit price of X is Birr 20 and per unit price of Y is Birr 40. a) Calculate the utility maximizing level of consumption of X1 and X2. b) Find the MRSX, Y at the optimum.If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit,
- For the typical Cobb-Douglas function, q= AKαLβ whereas APL /APK =1 , find out the marginal rate of technical substitution.A firm has a short-run production function as Q = 50 L + 6 L2 – 0.5 L3 Where Q = Quantity of output per week and L = Labor (number of workers) When does the law of diminishing returns take effect? Calculate the range of values for labor over which stages I, II and III occur. Draw the stages and indicate which stage will the firm consider as per optimal level of input?A bitcoin miner, Alex, needs only electricity (E) and computer (K) to mine bitcoin. Assume that the production function for his bitcoin business is of Cobb-Douglas type,?(?,?)=???? with?+?< 1, resulting in strictly convex isoquants and is the same in South Korea and USA. Suppose that, similar to the podcast, the price per unit of electricity is higher in South Korea than in USA. Suppose that the price of a computer is the same in both countries. i. Determine whether it is more expensive to mine one bitcoin in South Korea than in USA based on the above assumptions by using appropriate diagram and explain your answer. Please keep electricity on the horizontal axis and computer on the vertical axis while drawing your diagram.
- Economics Suppose that production for good X is characterized by the following production function, Q = 4K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $12 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is Multiple Choice $6.25. $9.14.Correct $10.07. incalculable since there is insufficient information to determine the average total costs.Consider a competitive, closed economy with a Cobb-Douglas production function with parameter α = 0.25. The parameter A is equal to 60. Assume also that capital is 100, labor is 100. Does the production function exhibit constant returns to scale? Demonstrate with examples. Determine if the production function exhibits diminishing marginal returns to capital. Demonstrate with calculusA firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Write down the firm’s production possibility set, and its input requirement set. 2. Is this production function concave, quasi-concave? 3. Is this production function homogenous? 4. Find its returns to scale when X1=1, and X2=1