Consider the following information about the input choices and prices, produci the same output in time 0 and time 1. Can you tell if the firm's choices are consistent with cost minimization or not? Demonstrate your answer. X1 X2 W1 W2 Time 0 10 1 4 Time 1 8 2
Q: Assume the Cobb-Douglas production function is Q= L ^0.75 K^0.5 and if price of labor per day is 5…
A: Given Q =L0.75 K0.5 ......... (1) Price of labour = 5 birr per day Price of capital = 10 birr…
Q: Consider production function f(L, K) = 10VLK and input prices w :10,r = 90.
A:
Q: Suppose for a particular firm the only variable input into the production process is labor, and that…
A: Total cost is the cost of all inputs needed to produce with the given output. ATC is given as $30…
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A: False statement
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A: Economies of scale happen when the average total cost decreases when output increases Diseconomies…
Q: 2,000 1,000 2 10 15
A: Average cost(AC) is minimized when q=10. At q=2, TC curve is increasing at increasing rate. At this…
Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…
A: The optimal level of labor and capital is given by the point where the marginal rate of technical…
Q: Solve it correctly last time incorrect solution provides Q) The marginal products of capital…
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A: In terms of economics, a production function is a relation stated with the physical output of a…
Q: A firm has a production function QL,K=100L0.4K0.6 with a cost function CL,K=5L+30K. What is the…
A: Q(L,K)=100L0.4K0.6 C(L,K)=5L+30K w=5 r=30 Q=1000 MPL=dQ/dL=0.4(100)L-0.6K0.6 MPL=40L-0.6K0.6…
Q: A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and…
A: Cost of production: These are the expenses faced by a firm for producing goods and services.
Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…
A: Given data: Total cost function TC=$1000+$6X Quantity X=3000 units
Q: For the total cost function TC (q) = q³ – 30q² + 800q, find the minimum marginal and average cost.…
A: Average Cost(AC)=TCq=q3-30q2+800qqAC=q2-30q+800Marginal Cost=dTCdqMC=3q2-60q+800
Q: If a firm is using optimal input proportions, it is minimizing its costs
A: A firm determines optimal input proportions by equating the slope of the isocost line with the slope…
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Q: When do we say that a firm is operating with least cost combination of inputs?
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Q: 20.Calculate the average fixed cost (AFC), for a level of production Q = 20, knowing that the total…
A: Given: TC=200+3Q+2Q2 Level of production (Q)=20
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A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…
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Q: What is a sunk cost? Provide an example of a sunk cost other than one from this book. Why are such…
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A: Given Total cost TC(q)=2q2-12000q+30,000,000 ...... (1) “Since you have posted a…
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A: Given: C(x) =250x+x23375
Q: Consider the production function Q = 20K1/2L1/2. The firm operates in the short run with 20 units of…
A: d. Derive AVC(Q) Q=20K12L12Q=20x(20)12L12Q=89.44L12 APL=QL =89.44L12L =89.44L-12…
Q: When production function of a firm is Q = 20K^0.5L^0.5 , price of capital is 5 per unit and price of…
A: Q = 20 K0.5 L0.5 EXPANSION PATH IS CALCULATED AS MPL/PRICE OF LABOUR = MPK/PRICE OF CAPITAL
Q: MNLOGS harvested logs (with no inputs from other companies) from their property in northern…
A: Given,MNLogs harvested logs with zero input cost and sold these logs to MNLumber for $1,500. Then…
Q: From the information given in the table, calculate the marginal cost of the 3rd unit of output.…
A: Marginal cost measures the change in total cost due to change in output produced. Marginal cost =…
Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90.
A:
Q: An is a collection of input bundles that yield the same output level
A: An Isoquant is a collection of the input bindles that yield the same output level
Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…
A: Answer: Given, Total cost function: TC=$1,000+$6X Calculation: To calculate marginal cost, derivate…
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A: In a market, economies of scale refers to the situation when a firm is experiencing an inverse…
Q: For the typical Cobb-douglas function, q=AKaLb whereas APL / APK = 1 , find out the marginal rate…
A: Marginal rate of technical substitution refers to the rate at which the use of 1 factor should be…
Q: Answer the question on the basis of the following cost data. 13 Total Cost $24 3. 1. 48 2. 3. 54 4.…
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Q: Which of the following statements is true? Group of answer choices If the marginal product of labor…
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Q: According to the information below, which of the following is (are) true? Units of variable input…
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Q: las Production function: Q 20KL The price of one unit of capital per hour is $20 and the price of r…
A: *Answer: To find the optimal quantity of K (capital) and L (labour), the profit maximising…
Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…
A: Incremental cost of production is the increase in total cost due to increase in the production…
Q: If a business has a long-run cost (TC) function given by TC = aq' – bq² + cq where q = the rate of…
A: Given Total cost function TC=aq3-bq2+cq ... (1) q= rate of output a, b and c are…
Q: onsider a production function Q = (K1/2) + (L1/2) + (M1/2) where L, K, M represent labor, capital,…
A: Given Production function Q = (K1/2) + (L1/2) + (M1/2) Price of L, K, M are 1,1,and 1 Q=12
Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…
A: Given that: Production Function: q = f(K, L) where K is capital and L is labor. Wage for one…
Q: Marginal variable costs and marginal total costs are the same. True False
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: Marc Nerlove conducted a classic study on economies of scale in the electric utility industry. I…
A: Economies of scale occur when the average total cost (ATC) decreases as output (Q) increases…
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- What is the difference between a fixed input and a variable input?Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A B C D E TI F 00 Grade It Now Save & Continue Continue without savingThe manager of a T-shirt stand found that the cost to produce 1O T-shirts is $112.59, white the cost to produce 40 T-shirts is $401.58. Assune the cost Csa linear function of x, the namber ef T-shirts produced. Calculate the marginal cost ot a T-shirt. that s, the change in cost of producing one additional Tshirt, (Rournd to 2 decimai places
- Suppose the production function for high quality brandy is given by : Q = √KL Where q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. Ifthecapitalrentsfor10$andthewageare5$perhour.,writetheshortruntotalcost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. Howmanylaborhourswillbehiredperweek?Define the followingSuppose there are two inputs for production, labor and capital. The firm’s production process isdefined by the following production functiony=f(L,K).Howdoweinterpretthefirm’smarginalrateof technical substitution? a)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same cost level b)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm produces one more unit of output c)How many units of capital the firm would have to give up in order to attain one more unit oflabor, such that the firm maintains the same level of production d)a) and b) are correct e)a) and c) are correct
- IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gaoThe munager af a T-airt stand found that the cost to prodice 30 Tahirts is $112 59, while the cont to produce 40 T-shirts is S401.58. Assume the cont C a linear function of a, the number of Tshrts produced. Calculate the marginal cost of a T-shirt, that s the change in cost of producing one additional T-shirt. (Round to 2 decimal placesGive atleast short definition about the statement of the problem given below.
- In recent years, the United States has experienced large increases in oil production due in large part to a new technology, hydraulic fracturing ("fracking"). Fracking involves injecting a mixture of water, sand, and chemicals into rock formations at high pressure to release oil and natural gas. An article in the Wall Street Journal indicates that economies of scale in fracking may be considerably smaller than in conventional oil drilling. If this view is cor- rect, what would the likely consequences be for the num- ber of firms drilling for oil in the United States?Bus Econ 4.2.11 Question Help v A juice company has found that the marginal cost of producing x pints of fresh-squeezed orange juice is given by the function below, where C') is in dolliars. Approximate the total cost of producing 276 pt of juice, using 3 subintervals over 0,276] and the left endpoint of each subinterval C'-0.000007x-0.0035x+4, for xs350 The total cost is about $ (Round the final answer to the nearest oent as needed. Round all intermediate values to the nearest thousandth as needed) Enter your answer in the answer box and then click Check Answer. Check Answer ll parts showing Clear Al 2AM Start P Type here to search 同 DELL F10 F4 %23 6. RPlease complete the below table. Output TotalFixed Cost TotalVariable TotalCost AverageFixed AverageVariable AverageTotal cost MarginalCost 0 20 1 10 2 6 3 24 4 13.5 5 66 6 14 7 76 8 114