Suppose that Eda runs an agricultural farm in which flowers are produced. The production function of...

 

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Suppose that Eda runs an agricultural farm in which flowers are produced. The production function of the farm 111 is the following: Q(H, K, L)=(H-10)+ KALA where H represents the land level, K represents capital level and L represents labor level. a) If Eda has 11 units of land, is there increasing returns to scale in this farm? b) Assume that Eda has fixed amount of capital, K=10000, and unit cost of capital is 5. Denote the unit cost of land = r and the unit wage=w. Derive Eda's demand for inputs-land and labor, respectively as a function of her choice of output (Q). c) Assume that Eda has fixed amount of capital K=10000 and unit cost of capital is 5. Additionally, you are given that the unit cost of land =r=100 and the unit wage=w=100. Show that Eda's short run cost function is given by TC(Q) = 51000 +2Q² d) Given that Eda's cost function is TC(Q) = 51000 + 2Q². Determine the marginal cost and average cost functions for Eda. How much should Eda produce in order to minimize average cost? Suppose that Eda runs an agricultural farm in which flowers are produced. The production function of the farm 111 is the following: Q(H, K, L)=(H-10)+ KALA where H represents the land level, K represents capital level and L represents labor level. a) If Eda has 11 units of land, is there increasing returns to scale in this farm? b) Assume that Eda has fixed amount of capital, K=10000, and unit cost of capital is 5. Denote the unit cost of land = r and the unit wage=w. Derive Eda's demand for inputs-land and labor, respectively as a function of her choice of output (Q). c) Assume that Eda has fixed amount of capital K=10000 and unit cost of capital is 5. Additionally, you are given that the unit cost of land =r=100 and the unit wage=w=100. Show that Eda's short run cost function is given by TC(Q) = 51000 +2Q² d) Given that Eda's cost function is TC(Q) = 51000 + 2Q². Determine the marginal cost and average cost functions for Eda. How much should Eda produce in order to minimize average cost?