Question: A competitive firms production function is q = 2LK. What is its marginal revenue product of labor?

A competitive firm’s production function is q = 2LK. What is its marginal revenue product of labor?

Step by Step Solution

★★★★★

3.37 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The competit... View full answer

blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Principles Questions!

Q:

A monopoly with a Cobb-Douglas production function, Q = (L( + K()1/(, faces a constant elasticity demand curve. What is its marginal revenue product of labor?

Q:

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/(?

Q:

Suppose that a firm's production function is q = L + K. Can it be a competitive firm? Why?

Q:

1.4 A competitive firms production function is q = 2LK. What is its marginal revenue product of labor? (Hint: MPL = 2K and see Solved Problem 15.1.) A

Q:

1. Determine: (1) whether there are diminishing marginal returns to labor in the short-run, and (2) the returns to scale. f (L,K) = 2L + 3K a. It is diminishing marginal returns to labor; it is...

Q:

A minimum wage law is established in a competitive market, and it raises wages from the equilibrium wage of $12 to the new minimum wage of $15. What is the best description of how this affects the...

Q:

Answer questions 1 through 9 listing the answer as it's letter or if it's true or false. 1. When the firm's long run average costs are constant, a. the firm is in the increasing returns to scale...

Q:

For each of three production functions below, determine: (1) whether there are diminishing marginal returns to labor in the short-run, and (2) the returns to scale. Determine: (1) whether there are...

Q:

A competitive firm's production function is \(q=\) \(2 L K\). What is its marginal revenue product of labor?

Q:

4. Suppose a perfectly competitive firm's production function is q = f(K, L) = (K)= (L) ; (a) Suppose K = 1.5, r = 4, w = 2, and P = 6, show the firm's short run problem and solve for L*. (b) Derive...

Q:

In your own words, describe the risk-return ratio.

Q:

During the year ended December 31, 2017, Liberty Inc. reported the following equity events: March 31, 2017 10 percent stock dividend April 15, 2017 $1 cash dividend per share June 30, 2017...

Q:

In the context of an audit of financial statements, substantive tests are audit procedures that Question content area bottom Part 1 A . are designed to test for dollar misstatements. B . are designed...

Q:

33. The ____________ effect refers to the theory that when the government borrows money to finance a deficit, it drives interest rates up, choking off some private spending on goods and services.

Q:

Federal housing assistance programs provide allowances that can be spent only on housing. Several empirical studies find that recipients increase their non-housing expenditures by 10% to 20%...

Q:

Federal housing ($44 billion in 2011) and food stamp subsidy ($78 billion in 2011) programs are two of the largest in-kind transfer programs for the poor. Many poor people are eligible for both...

Q:

Educational vouchers are increasingly used in various parts of the United States. Suppose that the government offers poor people $5,000 education vouchers that can be used only to pay for education....

Q:

0 1. Pine Company expects to sell 900 wreaths in December 2018, but wants to plan for 200 more and 175 less than expected. The wreaths sel for $8.00 each and have variable costs of $500 each. Fixed...

Q:

Mariela understands Tax-Free Savings Account (TFSA) but also understands that the available contribution room can be tricky to calculate. See Table C to help with your responses. She knows the...

Q:

Go to the website http://www.optionsplaybook.com/rookies-comer/learn-options-trading/and read "GETTING YOUR FEET WET'. What is a common mistake that rookie option investors often make? Answer in one...