Question: In Problem 19 in Chapter 8 you derived Hannah and Sam's long-run and short-run cost function when they have the Cobb-Douglas production function Q =

In Problem 19 in Chapter 8 you derived Hannah and Sam's long-run and short-run cost function when they have the Cobb-Douglas production function Q = F( L, K) = 10L0.25K0.25, both a worker and a unit of capital cost $1,000 per week, and they initially remodel 100 square feet a week. Their capital is fixed in the short run but variable in the long run. What are their long-run and short-run supply functions? Graph them.

Step by Step Solution

★★★★★

3.36 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The shortrun supply function isQ 629P 13 The longrun supply function is QP40 Explanation The supply ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

847-B-E-D-S (2771).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

In Problem 18 in Chapter 8 you derived Hannah and Sam's long-run and short-run cost function when they have the Cobb-Douglas production function Q = F(L, K) = 10L0.5K0.5, both a worker and a unit of...

Suppose that Hannah and Sam have the Cobb-Douglas production function Q = F(L,K) = 10L0.25K0.25 Both a worker and a unit of capital cost $1,000 per week. If Hannah and Sam begin by remodeling 100...

Consider again Worked-Out Problem 8.6 (page 271) but assume that Hannah and Sam are initially remodeling 200 square feet per week. What are their short-run and long-run cost functions if capital is...

tax Consider the market for apple juice. In this market, the supply curve is given by QS = 10PJ 5PA and the demand curve is given by QD = 100 15PJ + 10PT , where J denotes apple juice, A denotes...

Please, help me with the below questions. I have no idea, i would greatly appreciate your help. /learning. Problem PS5.3.1 0/1 point (graded) Kendall Square Inc makes and sells ramen to the large...

Hey, I need help with the questions in the pictures below. Please help me if you can, i have tried everything, and cannot seem to get the right answer. i also included the question i got right incase...

Problem PS5.3.1 Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production functionF(K,L)=(K+2L) 1/3 . Input prices arew=2andr=3for...

Ramen production Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function F(K,L)=(K+2L)1/3 . Input prices are w=2 and r=3...

1- Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function(,)=(+2)^1/3. Input prices are=2and=3for labor and capital...

Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production functionF(K,L)=(K+2L)13. Input prices arew=2andr=3for labor and capital...

In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds of $55,000 were received for the market value in 2019....

For a manufacturer, what does the planning process involve, and how is cost accounting information used in planning?

# 1 8 of 2 1 Under the allowance method for recording uncollectible accounts, the methods of estimating the allowances are a . percent of sales and analysis of receivables. b . direct write - off and...

How can a project manager ensure that all project requirements are met? a) By developing a detailed project schedule b) By using a requirements traceability matrix c) By creating a risk management...

1. A firms short-run supply curve shows the relationship between ________ on the horizontal axis and________ on the vertical axis. 2. To draw a firms short-run supply curve, you need its ________...

Journalize the following, assuming a 360-day year is used for interest computations: Apr. 30- Issued a $648,000,90-day, 8% note dated April 30 to Misner Co. on account. July 30 Paid Misner Co. the...

Check my work During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2018, you discover the following: a. An insurance policy...

Please answer B & C! C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 201 were as follows:...