A Chinese high technology manufacturing firm has a production function of q = 10L 0.28 K 0.64

Question:

A Chinese high technology manufacturing firm has a production function of q = 10L^0.28K^0.64 (based on Zhang et al., 2012). It faces factor prices of w = 10 and r = 20. What are its short-run marginal cost and average variable cost curves?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Nov 12, 2018 08:09 AM

See More Questions

A Chinese high technology firm has a production function of q = 10L 0.28 K 0.66 (Zhang et al., 2012). It faces factor prices of w = 10 and r = 20. What are its short-run marginal and average variable...
A firm has a Cobb- Douglas production function, q = ALaK, where a + < 1. On the basis of this information, what properties does its cost function have? For example, a U. S. chemical firm has a...
A firm has a production function of Q = 0.25KL0.5, the rental rate of capital is $100, and the wage rate is $25. In the short run, is fixed at 100 units. a. What is the short-run production...
Explain and justify what stage current bubble is in ?Analyze the financial markets and contribution of participants that create the bubble? Justify and explain the factors that will cause this bubble...
An ice cube is placed on top of an overturned spherical bowl of radius r, as indicated in FIGURE 8-42. If the ice cube slides downward from rest at the top of the bowl, at what angle does it...
You have a logarithmic utility function U(W) = In W, and your current level of wealth is $5,000. (a) Suppose you are exposed to a situation that results in a 50/50 chance of winning or losing $1,000....
Intuition in decision-making can expedite decision-making (versus cognitive domains that are slow and deliberate), but it can fail or mislead us, too. How can that be?
Kean Dry Cleaners is owned and operated by Wally Lowman. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another...
Suppose you have $1,000.00 and face two alternatives: 1. Put the money in an interest-bearing account that pays 0.5% monthly. This account is secured against bank failure. 2. Hold the money in cash....
Sea water plays a vital role in the study of submarine communications. Assuming that for sea water, = 4 S/m, r = 80, r = 1, and f = 100 MHz, calculate: (a) The phase velocity, (b) The wavelength,...
If the cost function for Johns Shoe Repair is C(q) = 100 + 10q - q 2 + 1/3q 3 , and its marginal cost function is MC = 10 - 2q + q 2 , what is its profit-maximizing condition given that the market...
Refer to Section 1.5.6. Using the likelihood function to obtain the information, find the approximate standard error of .
Take each hex digit and write its four-bit binary value without performing any calculations by hand or by calculator. (a) 6 (b) 7 (c) 5 (d) 1 (e) 4 (f) 3 (g) C (h) B (i) 9 (j) A (k) 2 (l) F (m) 0 (n)...
Ron and Linda have been living together for several years, but are not legally married. Ron's assets were valued at over $ 5 million last year. If Ron passes away this year, he will be able to use...
What actions are suggested to review your debt and strategize a plan a . Take a hard look and examine your behavior and spending patterns b . Look for fraudulent charges c . Lump all your spending...
Olivia borrows money from a bank today. The interest rate is 8.7% p.a. compounded half- yearly. She has 2 options to repay the loan: - Option A: She repays $9,000 in 9 years and $8,000 in 12 years....
5. Maurice has found two apartments he likes. Apartment 1: 1-bedroom apartment, walking distance from work. The rent is $830 per month, including heat, water, and parking. The building has a fitness...
You purchase 50 shares for $70 a share ($3,500), and after a year the price falls to $63. What will be the percentage return on your investment if you bought the stock on margin and the margin...
Find a general solution. Check your answer by substitution. ODEs of this kind have important applications to be discussed in Secs. 2.4, 2.7, and 2.9. 10y" - 32y' + 25.6y = 0
H.J. Heinzs annual dividends were as follows: 1990 ..............$0.540 1991.............. 0.620 1992 .............. 0.700 1993.............. 0.780 1994 .............. 0.860 1995 .............. 0.940...
Why must isoquants be thin?
Suppose that a firm has a fixed-proportions production function in which 1 unit of output is produced using one worker and 2 units of capital. If the firm has an extra worker and no more capital, it...
To produce a recorded CD, q = 1, a firm uses one blank disc, D = 1, and the services of a recording machine, M = 1, for one hour. Draw an isoquant for this production process. Explain the reason for...
Complete Telecom Solution's worksheet for the month ended November 3 0 , 2 0 2 4 . How much was net incoke for November? Requirements 1. 2. Complete Telecom Solution's worksheet for the month ended...
Question: Part One: Memo Write an analysis of the impact of tax laws and incentives as demonstrated in this current years tax return. Specifically, you must address the following: Explain the...
From the following ledger balances, prepare a trial balance for the Cheyenne Corp. at June 3 0 , 2 0 2 2 . All account balances are normal.Accounts Payable $ 1 0 , 0 0 0 , Cash $ 7 , 4 0 0 , Common...

A Chinese high technology manufacturing firm has a production function of q = 10L 0.28 K 0.64

Question:

Step by Step Answer:

Let K be fixed in the short run First use the product...View the full answer

Microeconomics

Students also viewed these Business questions