Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

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Answer 1

Question

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

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Imagine that the production function for tuna cans is given by q = 6K + 4L where q = Output of tuna cans per hour K = Capital input per hour L = Labor input per hour a. Assuming capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? To produce 100 per hour? b. Now assume that capital input is fixed at K = 8; what L is required to produce 60 tuna cans per hour? To produce 100 per hour? c. Graph the q = 60 and q = 100 isoquants. Indicate the points found in part a and part b. What is the RTS along the isoquants?

An electronics plant’s production function is Q = 5LK, where Q is its output rate, L is the amount of labor it uses per period of time and K is the amount of capital it uses per period of time. The Price of labor is $1 per unit of labor and the price of capital is $2 per unit of capital. a) What is the optimal combination of inputs the plant should use to produce 1000 units of output per period? b) Suppose that the price of labor increases to $2 per unit. What effect will this have on optimal L and K to produce Q=1000? c) Is this plant subject to decreasing returns to scale? Why or why not?

Imagine that the production function for tuna cans is given by: q = 6K + 4L Where q = output of tuna cans per hour K = capital per hour L = labor input per hour. a. Assume capital is fixed at K = 6, how much L is required to produce 60 tuna cans per hour? b. Now assume capital is fixed at K = 8, how much L is required to produce 100 tuna cans per hour? c. Graph the q = 60 and q = 100 isoquants, in indicate the points found in parts a and b. d. What are the MP of capital and labor and What is the MRTS along the isoquants?

Answer 2

Question

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

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Answer 3

Question

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

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Answer 4

Question

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

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Answer 5

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

Answer 6

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

Answer 7

Chapter 6, Problem 6.1P

a.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

Answer 8

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

Answer 9

b.

To determine

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

Answer 10

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

Answer 11

c.

To determine

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 6.2 - Prob. 1TTA Ch. 6.2 - Prob. 2TTA Ch. 6.2 - Prob. 1MQ Ch. 6.2 - Prob. 2MQ Ch. 6.3 - Prob. 1TTA Ch. 6.3 - Prob. 2TTA Ch. 6.3 - Prob. 1MQ Ch. 6.3 - Prob. 2MQ Ch. 6.4 - Prob. 1TTA Ch. 6.4 - Prob. 2TTA

Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

To calculate:Labor required to produce 60 and 100 cans of tuna per hour, when capital input is fixed at 6 per hour.

To calculate:Labor required to produce 60 and 100 cans of tuna per hour when capital input is fixed at 8 per hour.

To draw:Isoquants at output of 60 and 100 tuna cans, indicating points of sub-part a and b and determination of rate of substitution along the isoquants.

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Chapter 6 Solutions