Question: 1. Your firm faces a production function that is Q(K,L) = K0.5L0.5. Let w, the hourly wage rate of labor, be = $2. Let v,

1. Your firm faces a production function that is Q(K,L) =

1. Your firm faces a production function that is Q(K,L) = K0.5L0.5. Let w, the hourly wage rate of labor, be = $2. Let v, the hourly rental rate of capital, be = $8. a. Solve for the firm's demand for K and L as a function of Q. b. Based on your answer to (a), if you decide that you want to produce Q=40 units, how many units of K and L will you use to minimize costs? Explain how you found the answer. c. What is the total cost of producing Q = 40 units? d. When you are producing Q = 40 units, what is the marginal product of capital? What is the marginal product of labor? e. Starting at Q = 40, what is the marginal cost of producing another unit of Q? What is the marginal cost of producing a "little bit" more Q (e.g., the calculus answer)?

Your rm faces a production unction that is Q(K,L) = KO'SLO'S. Let w, the hourly wage rate of labor, be = $2. Let v, the hourly rental rate of capital, be = $8. a. Solve for the rm's demand for K and L as a anction of Q. b. Based on your answer to (a), if you decide that you want to produce Q=40 units, how many units of K and L will you use to minimize costs? Explain how you found the answer. 0. What is the total cost of producing Q = 40 units? d. When you are producing Q = 40 units, what is the marginal product of capital? What is the marginal product of labor? e. Starting at Q = 40, what is the marginal cost of producing another unit of Q? What is the marginal cost of producing a \"little bit\" more Q (e. g., the calculus answer)

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!

Answer it correctly please. I will rate accordingly with multiple votes. This is my last attempt answer only if 100% correct. Ty-ped answer please. Question 23 The firm's production function is given...

Problem C 1. A firm faces the production function Q = 5LK. The wage rate is 2 and the rental rate of capital is 3. A. (3 points) What type of returns to scale does the production function above...

Hello. Please help me solve these questions I am having some issues finding the variance and standard deviation. I feel like may have it, but unsure if I am coming out with the correct answer. Thank...

This assignment covers general equilibrium, oligopoly, and game theory. Please answer the ques- tions below, which are related to Chapters 12, 13, and 16 of P&R. Beyond reviewing the material from...

kindly solve these problems for me. strictly answer all questions 1. Peach-Lemon problem Consider the market of used cars. Sellers have two types of cars: peaches (cars in good condition) and lemons...

1) A firm's production function is q = F(L, K) = L + K The wage rate of labor is w equal to $ 2 and the rental rate of capital is r equal to $8. a)Suppose capital is fixed at a level 2 in the short...

For this question, parts A and B are unrelated. A. (5 points) A firm's long-run total cost can be written as LTC = 5000Q - 25Q' + Q and its long-run marginal cost by LMC = 5000 - 50Q + 3Q2. Find the...

Consider Liam who produces gadgets using labor (L) and capital (K). Also suppose that the hourly wage rate (w) is $2, the rental rate (r) is $1, and the output target is 10. If Liam's production...

1. Julia operates a biotechnology firm that manufactures COVID-19 vaccines using labor (L) and capital (K) as inputs. Julia's production function for vaccines is given by f(L, K) = 10(VL + 2VK). The...

1. Julia operates a biotechnology firm that manufactures COVID-19 vaccines using labor (L) and capital (I\\) as inputs. Julia's production function for vaccines is given by f(L, K) = 10(vV/L + 2V/K)....

Compare the NPV for Project A and Project B Project A has an initial investment of $700,000 and projected cash inflows of $225,000 for 5 years. Project B has an initial investment of $400,000 and...

Explain why a review of interim financial statements for a public company may provide a greater level of assurance than an SSARS review.

( 4 ) 1 2 . Use divergence theorem t o evaluate S vec ( F ) * d v e c ( S ) where vec ( F ) = ( : z , y , x : ) and S i s the surface o f the sphere x 2 + y 2 + z 2 = 1 , normal vectors point outward...

Describe Diffrent ways to develop a Work breakdown structure or WBS and explain why it is often so difficult to do.

can u please help me in writing annotated bibliography (250 word for each source )of following sources for research topic "impact of digital technology on education" What is the summary of the...

Annotated bibliography for following source for research topic of "Impact of digital technology on education". Turkle, S. (1999). Looking toward cyberspace: Beyond grounded sociology. Cyberspace and...

Write an annotated bibliography based on academic research of building internally consistent compensation systems. Must be over 1 of the following Research Topics: The Role of Discretionary Benefits...

Annotated bibliography of the following sources for the research topic of "Impact of digital technology on education". Junco, R., & Cotten, S. (2011). Perceived academic effects of instant messaging...

Question 7 . Given the following simple maze, convert the maze into a graph. ( 5 points ) Question 8 . Implement depth first search in the maze function in homework 1 . py . ( 2 0 points ) Question 9...

1. Why do we trust one type of information more than another?

9. Imagine giving a talk to an assembly that is critical of you. Imagine a large aggressive dog that is your friend and facing the assembly. Imagine further that you are on a mountain top and the...

8. Now spend two to three hours walking around listening to what people are saying. Place yourself in a place where you can hear what people are saying clearly and distinctly, for example in a cafe,...