Show that the quantity of labor or capital that a firm demands decreases with a factor's own

Question:

Show that the quantity of labor or capital that a firm demands decreases with a factor's own factor price and increases with the output price when the production function is Cobb-Douglas as in Equations 15.12 and 15.13?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Dec 29, 2017 01:04 AM

See More Questions

A New York Times article published in 2007 observed that the wage of farm workers in Mexico was $11 an hour but the wage of immigrant Mexican farm workers in California was $9 an hour. a. Assume that...
1. Arrows up or down: A decrease in the supply of nurses wills ________ the equilibrium wage and ________ the equilibrium quantity of nursing services. 2. Arrows up or down: An increase in the demand...
1. The wage for a particular occupation will be relatively low if labor _______ (demand/supply) is small relative to labor _______ (demand/supply). 2. If a city has a relatively high crime rate, we...
Give parametric equations and parameter intervals for the motion of a particle in the xy-plane. Identify the particles path by finding a Cartesian equation for it. Graph the Cartesian equation....
A control mass of 10 kg butane gas initially at 80C, 500 kPa, is compressed in a reversible isothermal process to one-fifth of its initial volume. What is the heat transfer in the process?
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
Consider the gasoline mileage data in Table B.3. a. Fit a multiple linear regression model relatmg gasoline mileage $y$ (miles per gallon) to engine displacement $x_{1}$ and the number of carburetor...
Budgeting information Consider a company that sells prescription drugs. It has salespeople who visit doctors and hospitals to encourage physicians to prescribe its drugs. The company sells to...
Same facts as in above example no . 5 with this additional information. Maria s $ 1 0 0 , 0 0 0 basis in her LLC interest included a $ 1 2 0 , 0 0 0 share of the LLC s liabilities. Rather than a cash...
You want to park your bicycle in a bicycle parking area where bike racks are aligned in a row. There are already N bikes parked there (each bike is attached to exactly one rack, but a rack can have...
Georges, the owner of Maison d'Ail, earned his coveted Michelin star rating by smothering his dishes in freshly minced garlic. Georges knows that he can save labor costs by using less garlic, albeit...
A competitive firm has a constant elasticity production function, q = (L( + K()1/(. What is its marginal revenue product of labor? q = (L( + K()1/(?
Compare and contrast a marketing Web site and a branded community Web site? (AACSB: Written and oral communication).
A proxy statement ________. Question 18 options: outlines all the issues that will come up for a vote at a shareholders' meeting contains detailed information about a firm's finances is used by...
The contract rate on previously issued bonds changes as the market rate of interest changes. Group starts
eBook Briefly explain the relationship that exists for the factors that affect currency put option premiums. The -Select- the existing spot rate relative to the strike price, the greater is the put...
a company has declares a dividend with a payment date of March 31st. the date of record is Tuesday, March 9th. What is the ex-dividend date?
Investments, insurance, and tax assistance are tools for financial planning and are also known as Question 15Select one: a. Checking accounts. b. Trusts. c. Loans. d. Savings accounts. e. Financial...
Differentiate (a) y = 5x 2 (b) y = 3/x (c) y = 2x + 3 (d) y = x 2 + x + 1 (e) y = x 2 3x + 2 (f) y = 3x (g) y = 2x 3 6x 2 + 49x 54 (h) y = ax + b (i) y = ax 2 + bx + c ( j) y = 4x - 3/x + 7/x 2
Which, if any, of the dichloroethene molecules drawn in Data Table II (3.) (4.) and (5.) are geometric isomers? A. B. C. D. cis-1,2-dichloroethene and trans-1,2-dichloroethene...
Beginning from an initial equilibrium, draw the effects of the changes in the following list in terms of the relevant supply and demand curves. a. An increase in the price of hot dogs on the...
Use supply and demand curves to show: a. Simultaneous increases in supply and demand, with a large increase in supply and a small increase in demand. b. Simultaneous increases in supply and demand,...
The market for baseball tickets at your college stadium, which seats 2,000, is the following: a. What is the equilibrium price? b. What is unusual about the supply curve? c. At what prices would a...
Exploring Variable Length Parameter Lists The file Parameters.java contains a program to test the variable length method average from Section 7.5 of the text. Note that average must be a static...
How would I write a test case for the following steps so that the test cases run properly @Test void dequeueItemsHasRightValuesAndSize() { Queue testQ = new Queue (); int result; enqueueValues(testQ,...
Analyse the quality of the Java codes below public static boolean leap(int y) { String tmp = String.valueOf(y); if (tmp.charAt(2) == '1' || tmp.charAt(2) == '3' || tmp.charAt(2) == 5 || tmp.charAt(2)...

Show that the quantity of labor or capital that a firm demands decreases with a factor's own

Question:

Step by Step Answer:

Equations 1512 and 1513 are problematic because d 0 for a CRS CobbDouglas which makes the ex...View the full answer

Microeconomics Theory and Applications with Calculus

Students also viewed these Economics questions