Question: 1. Consider the following production function: y = f (L, K) = min {1.3, 2K}. (a) Derive the technical rate of substitution. (b) Determine the

1. Consider the following production function: y = f (L, K) = min {1.3, 2K}. (a) Derive the technical rate of substitution. (b) Determine the returns to scale (constant, increasingI or decreasing). (c) Determine the long-run cost function c(w,r,y), where r is the rental rate of capital, is is the wage rate, and y is the target output. (d) Suppose the market price of output is p. Solve the rm's long-run prot max- imization problem {using the cost function above). Briey describe the rm's supply decision

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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 Economics Questions!

Go back and quickly review the rules that the Sarbanes-Oxley Act of 2002 placed on the auditing profession as described in this chapter. What do you think are the two or three main purposes of these...

Question 1 is an open question. For questions 2 and 3 select one alternative and provide a short motivation, without motivation, you will receive zero points. 1. Consider the following production...

Econ 8370: Test III 12/10/2020 1. (15 points) Multiple Choice Questions: Choose the Best Answer. 1-1. The function f(x1,x2) = (x02 + 2171352 + (3:2)2 is (1) concave (2) convex (3) homogeneous (4)...

Macro:: thanks. Consider the argument presented by James Dorn, "The Minimum Wage Delusion, and the Death of Common Sense." On page 392, paragraph 23, he states, "The best anti-poverty program is not...

Please solve 5. Answer all parts (a)-(e) of this question. Consider the following production function: Q = 3K 1 3L 1 3, with marginal products given by MPL = K 1 3 L 2 3 and MPK = L 13 K 2 3. Define...

Please only answer questions e , f , g and h. Thanks Question 1 Consider the following production function: y = max) = 4L%K% where L and K are the amount of labour and capital used in the production...

1. Returns to Scale Consider the following production function g = 21 + L% Does this production function have returns to scale? If so, which type? Show your proof. 2. Optimal Inputs Consider a rm...

i need solve 1-3-5 1. Why is constant return to scale incompatible with perfect competition? 2. What is price discrimination? What are the necessary conditions of price discrimination? What companies...

Question 1 Consider the following production function: y = F(L, K) = 40=K3 where L and K are the amount of labour and capital used in the production process, and y is the output. Throughout this...

(4 ) Consider the following production function: Q - f (K, L) - 10K $13 1. What type of returns to scale does it exhibit? 2. Compute the isoquant for Q=100 3. Compute Marginal Returns to Scale? 4....

PLS HELP ME 6. (4p) Consider a Heckscher-Ohlin model with two countries, Home and Foreign, and two factors of production, land (T) and labor (L). Land and labor are used to produce two goods, gadgets...

Discuss how Congress encourages or discourages certain spending behaviors through tax policy. There have been many discussions in this country espousing movement against the Value Added Tax (VAT)....

find the source of the journal from which this image came - ITO TiO, Nanoparticles- ITO Elektrolit LUMO Electroda Kerja Counter Electroda Ecb e- e Dyes HOMO e Katalis Platina L

If the opinions of those trusted by recipients of change are positive and the recipients initial attitude toward the change is negative, recipients are likely to respond in which of the following...

For cracks of size 4 and 7 mm the specimen compliances of (1/M) are found to be 1.48510 -5 and 1.63510 -5 Mm/N for a singleedge notched plain carbon steel specimen at a critical load value of 10 kN....

Shah presents 23 best practices to implement and examine how the shape of the regulatory data collection process may change in the future through using extensible business reporting language (XBRL)....

Anak Chips Sdn Bhd manufactures and sells electronic chips. Anak Chips has an issued share capital of RM1,000,000 and is wholly owned by Mother Board Sdn Bhd, a company with an issued share capital...

For each of the following trusts settled by Mrs. A explain: The tax consequences of the transfer of property by Mrs. A to the trust; The rate of tax payable by the trust; The tax consequences of...

We have looked at the breakeven calculations for a single-product firm. However, most firms make more than one product - or service. Conceptually, multiple-product breakeven is the same as single...

Organizational control involves the process and procedures that regulate, guide, and protect organizations. True or false

Go, do not wait until I come

Make eye contact when talking and listening

Do not go, wait until I come