Assignments 1. Deliberate, how the optimal resource combination will be defined under a) Cobb-Douglas technology, b)...

 

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Assignments 1. Deliberate, how the optimal resource combination will be defined under a) Cobb-Douglas technology, b) linear technology, c) constant proportion technology. 2. A firm with Cobb-Douglas technology spends each day UAH500 as wages and UAH200 as leasing payments for equipment. It produced 500 product units per day and uses as much labor and capital that marginal product of capital equals 4, marginal product of labor 8. A. Does the firm achieve optimal resource combination? B. If not, how it should change the resource combination? 3. A competitive firm has production function described as x = v₁1/2v₂1/2. Define: A. Cost minimization condition. 5. Functions of short-term total, average and marginal cost, if v₁ = 81 and input prices are 25 and 100 m.u. Assignments 1. Deliberate, how the optimal resource combination will be defined under a) Cobb-Douglas technology, b) linear technology, c) constant proportion technology. 2. A firm with Cobb-Douglas technology spends each day UAH500 as wages and UAH200 as leasing payments for equipment. It produced 500 product units per day and uses as much labor and capital that marginal product of capital equals 4, marginal product of labor 8. A. Does the firm achieve optimal resource combination? B. If not, how it should change the resource combination? 3. A competitive firm has production function described as x = v₁1/2v₂1/2. Define: A. Cost minimization condition. 5. Functions of short-term total, average and marginal cost, if v₁ = 81 and input prices are 25 and 100 m.u.

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1 a CobbDouglas technology The optimal resource combination will be defined as a function of the inp... View the full answer