As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $5000 to produce, what is the firm's optimum output
Q: If a firm is operating on the production function, then workers A. must be putting forth maximal…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: A county government hires lawyers to defend itself in lawsuits. The local government provides its…
A: Cost structure refers to the different types of cost associated with the production and selling of…
Q: A fast-food company in Hermanus has the following cost function: TC = 10 + 3K + 2L, where Lis the…
A: Given total cost: TC=10+3K+2L ......... (1) and production function Q=2KL ........…
Q: For the cost function C(Q) = 75 + 4Q + 2Q2, the marginal cost of producing 5 units of output is
A: The marginal cost is the change in the total cost that arises when the quantity produced is…
Q: C(Q) = 100 + 20Q + 15Q2 + 10Q3 Based on the cost function, determine: The fixed cost of producing…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Consider the following production function with inputs L and K: Q = (L 0.5 + K0.5)2. The input…
A: Firm wish to produce certain amount of output and it wishes to produce that output at lowest…
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…
A: If a firm wants to minimize the cost of production when it distributes its total production between…
Q: The long run is a period of time: that is too short to change the size of a firm's plant. that is…
A: The economy evaluates its production process or policy implication in two different brackets of time…
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: The technology for making nails is described by the Cobb-Douglas production function Q(L,K) = L*K,…
A: MRTS is the marginal rate of technical substitution which is the rate at which one input is…
Q: According to the marginal decision rule, if marginal benefit: Group of answer choices A. exceeds…
A: According to the marginal decision rule, the firm will maximize the profit by increasing the output…
Q: If marginal cost is greater than average total cost, then average total cost must be increasing.…
A: The marginal cost curve is downward sloping when it is below ATC. At the same time ATC is also…
Q: Suppose the production is characterized by the function Q(K,L) = 50K05L05. The price of labor is $5…
A: Cost is minimized at the bundle of inputs where marginal rate of technical substitution is equal to…
Q: Which of the following statements is the least likely to be true? A) Automation requiring…
A: Automation alludes to the course of naturally delivering products using robots, control frameworks…
Q: If the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum…
A: A production function in economics describes the technological relationship between the quantities…
Q: If the production function of a firm is P = 60kl, where the price per unit of input k is $10 and I…
A: Production function of a firm : P = 60kl Price of per unit of k : r=$10 Price of per unit of l :…
Q: 1. A firm’s production function is Q = L1/2 K1/2 They have 16 units of capital (which is fixed in…
A: Inputs are resources that benefits the production unit in developing goods and services. In the…
Q: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…
A: The isoquant line shows the different combinations of factors of production required to produce a…
Q: Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its…
A: Hi, thanks for the question. Since there is multiple subparts, I will answer for the first question.…
Q: Scarcity is a condition that exists when A. there is a fixed supply of resources relative to the…
A: Economics provide information about the production and consumption decision of the citizens based on…
Q: A firm faces the production function Q = 6K0 L0.5. If it can buy input K at £32 a unit and input L…
A: Cost is minimized when marginal rate of technical substitution equals price ratio of inputs.…
Q: When economies of scale are large, firms can reduce their average total cost by: Multiple Choice…
A: When firms have large economies of scale, they tend to merge with other firms to make up larger…
Q: In a production process, an excessive amount of the variable input relative to the fixed input is…
A: Short-run production: Under the short-run production, there are both factor inputs i.e. Fixed and…
Q: The marginal cost curve is generally ______________, because diminishing marginal returns implies…
A: The economic cost compares the benefits and drawbacks of various options. It does this in terms of…
Q: A firm faces the production function Q=6K0.4L0.5 . If it can buy input K at K32 a unit and input L…
A: For a given budget and production function, the production maximizing inputs are obtained using the…
Q: When average cost decreases as output increases, Group of answer choices marginal cost is below…
A: The economies of scale curve is a long-run average cost curve since it permits all variables of…
Q: x units of labor and y units of capital is given by Suppose the production of Scooby Snacks the…
A: In economics and econometrics, the Cobb–Douglas production function is a particular functional form…
Q: Total cost at zero level of output will be
A: # Total cost is given as the sum of total fixed costs and total variable costs. That is:- TC = TFC +…
Q: Suppose that firms face the following production function: Q = L+7* +K+/*. Suppose also that price…
A: A firm optimal production occurs at the following point: (MPL / MPK) = (w /r)…
Q: The cost minimizing equilibrium condition is a. MPL/PL = MPK/PK. b. PL = PK. c. MPL = MPK.
A: Marginal rate of technical substitution refers to the rate at which the firm can replace inputs to…
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.25x…
A: A firm minimizes costs when it distributes production across the two process so that marginal cost…
Q: Suppose the production of airframes is characterized by a CobbDouglas production function: Q =LK.…
A: The Cobb-Douglas (CD) production function is an economic production function that describes the…
Q: If the total cost function for a product is C(x) = (x+5)° dollars, where x represents the number of…
A: Given, Total cost, C(x)=x+53 The average cost, AC(x) = C(x)/x AC(x) = x+53x To find the units which…
Q: Economies of scale are of two kinds
A: With an increase in the production of output, the firm will enjoy a cost advantage, this is known as…
Q: Which of the following statements is true? Group of answer choices If the marginal product of labor…
A: According to the law of diminishing returns as more units of the variable input labor is used with a…
Q: The activity driver for the packing activity is the number of packing hours. Product A uses 50…
A: The consumption ratio is calculated by dividing the value of a product by the sum of the value of…
Q: At zero level of production, _______ cost is always zero
A: Whenever production starts, the firm has to incur costs such as rent of the property such as…
Q: The total cost of producing the first q items is given by the formula C(q) = -2q^3 + 60q^2 + 1000…
A: Given: Total cost function C(q) = -2q3 + 60q2 + 1000 First, we will find the average cost function…
Q: Cash expenditures a firm makes to pay for resources are called: a. Explicit costs b. Opportunity…
A: Explicit costs are cash based costs for a firm—for instance, installments for wages and pay rates,…
Q: A firm has access to two production processes with the following marginal cost curves: MC1 = 0.6Q1…
A: GIVEN A firm has access to two production processes with the following marginal cost curves: MC1 =…
Q: The cost, in dollars, of producing æ units of a certain item is given by C (z) = 5x – 4/7 – 1. Find…
A: Average cost (AC) is defined as the per unit cost of producing a commodity. AC = TC/x
Q: Marginal cost is calculated for a particular increase in output by Question 1 options: A)…
A: Marginal cost refers to an additional cost of producing one more unit of output.
Q: Suppose the production function for a product is given by q = 100KL. If the price of capital is $81…
A: Given: Production Function : q=100KL Price of capital (r) = $81 per day Price of labor (w) = $27…
Q: manufacturer!s total cost is C(x) = 0.1x3 - 0.25x2 + 300x + 100 dollars, where x is the level of…
A: We calculate the total cost with x=6 and x=6.1 and then see the difference. TC(6) = 0.1(6)3 -…
Q: When production is at level zero then the value of ___________ cost is always zero.
A: Total cost = fixed cost + variable cost Fixed cost always remain constant even when output is zero.…
As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $5000 to produce, what is the firm's optimum output
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $7500 to produce, what is the firm's optimum output 250 200 100 150As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the production plan is to produce 100 products, what is the firm's minimized costAs a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the production plan is to produce 250 products, what is the firm's minimized cost? A: $7500 B: $5000 C: $12500 D: $10000
- The Cobb-Douglas production function for a particular product is N(x,y) = 40x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $120. Answer the questions (A) and (B) below. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. (A) If $300,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production function Q=LK. The wage (w) is $10 and the rate of capital (r) is $20. The target number of rocking chairs to produce is 800. It is the short run and the amount of K is fixed at 5. What the optimal values for L* and K* in the short run?The Cobb-Douglas production function for a particular product is N(x,y) = 80x0.6.0.4, where x is the number of units of labor and y is the number of units of capital required to produce N(x, y) units of the product. Each unit of labor costs $40 and each unit of capital costs $60. Answer the questions (A) and (B) below. (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. (B) Find the marginal productivity of money in this case, and estimate the increase in production if an additional $50,000 is budgeted for the production of the product. C (A) If $150,000 is budgeted for production of the product, determine how that amount should be allocated to maximize production, and find the maximum production. Production will be maximized when using units of labor and units of capital.
- The weekly cost C of producing x units in a manufacturing process is given by C(x) = 60x + 2250. The number of units x produced in t hours is given by x(t) = 50t. (a) Find and interpret (C ∘ x)(t). (C ∘ x)(t) = (C∘x)(t) represents the cost of production as a function of time. (C∘x)(t) represents the production as a function of cost. (b) Find the cost of the units produced in 4 hours.$ (c) Find the time that must elapse in order for the cost to increase to $15,000. hrThe cost of renting tuxes for the Choral Society's formal is $21 down, plus $87 per tux. Express the cost C as a function of x, the number of tuxedos rented. C(x) = Use your function to answer the following questions. (a) What is the cost of renting two tuxes? %$4 (b) What is the cost of the second tux? $4 (c) What is the cost of the 4,098th tux? 2$ (d) What is the variable cost? %24 What is the fixed cost? $4 What is the marginal cost? %24A firm uses labor (L) and capital (K) to produce rocking chairs (Q) with the following production function Q=LK. The wage (w) is $10 and the rate of capital (r) is $20. The target number of rocking chairs to produce is 800. It is the short run and the amount of K is fixed at 5. What the optimal values for L* and K* in the short run? Enter the number for the the optimal amount of L in the short run? Enter the number for the the "optimal" amount of K in the short run?
- Kendra bought 208 donuts for $80. Her profit was $45 once she had sold 100 donuts. Which equation below represents Kendra's profit P(n). as a function of the number sold, n?Exercise 21.1 A firm has weekly production function q(k, 1) = k!/471/2, and the unit weekly costs for capital and labour are v = good. Find the minimum cost of doing so. 20 and w =10. The firm wishes to produce 200 units a week of itsIf the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum cost of producing one unit of output?