Question: 3.Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by:

3.Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by: MPL = (K^1/2)/(2L^1/2), and MPK = (L^1/2)/(2K^1/2)

a) If the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output Q = 18?

b)What is the firm's Total Cost function TC(Q)?

c) What is the firm's marginal cost of production?

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!

simple questions..! 2. (20 points) Suppose a firm's production function is given by Q = L 1/2 *K 1/2 . The Marginal Product of Labor and the Marginal Product of Capital are given by: MP L = L -1/2 K1...

Suppose a firm's production function is given by Q = L 1/2 *K 1/2 . The Marginal Product of Labor and the Marginal Product of Capital are given by: MP L =

3.(30 total points) Suppose a firm's production function is given by Q = L 1/2 *K 1/2 . The Marginal Product of Labor and the Marginal Product of Capital are given by: MP L = K^1/2 divided by 2L^1/2...

3. (30 total points) Suppose a firm's production function is given by Q = L 1/2 *K 1/2 . The Marginal Product of Labor and the Marginal Product of Capital are given by: MP L = K1/2 over 2L 1/2 and MP...

Suppose a firm's production function is given by Q = L 1/2 *K 1/2 . The Marginal Product of Labor and the Marginal Product of Capital are given by: MP L =, and MP K =. If the price of labor is w =...

2. (20 pointe) Suppose a firm's production function is given by Q = 1"=-213. The Marginal Product of Labor and the Marginal Product of Capital are given by- 2) (6 points) Suppose the price of labor...

3. (30 total points) Suppose a rm's production function is given by Q = L\"2*K\"2. Thc Marginal Product of Labor and the Marginal Product of Capital are given by: ,andMPK= 2L1" 2K"2 ' a} [12 points)...

You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w (price of labor) = $40, r (price of capital) = $100, MP L =...

1. (a)You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w (price of labor) = $40, r (price of capital) = $100, MP...

A bond of Visador Corporation pays $90 in annual interest, with a $1,000 par value. The bonds mature in 25 years. The market's required yield to maturity on a comparable-risk bond is 8.5 percent....

1. What is quality? What factors define quality for Montonis products? 2. What lessons about valuing a business can you take away from this video? 3. What do you think of the market potential for...

Corporations may split stock to: increase revenues. avoid taxation on the whole share of each stock. fund new projects. bring the price down to the theoretical price range for the stock.

Dilution Teardrop Inc., wishes to expand its facilities. The company currently has 10 million shares outstanding and no debt. The stock sells for $50 per share, but the book value per share is $20....

Develop a user-friendly program for the Heun method with iterative corrector. Test the program by duplicating the results in Table 25.2.

Warranties Selzer Equipment Company sold 500 Rollomatics during 2010 at $6,000 each. During 2010, Selzer spent $30,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable...

Upland Company borrowed $40,000 on November 1, 2010, by signing a $40,000, 9%, 3-month note. Prepare Uplands November 1, 2010, entry; the December 31, 2010, annual adjusting entry; and the February...

Streep Factory provides a 2-year warranty with one of its products which was first sold in 2010. In that year, Streep spent $70,000 servicing warranty claims. At year-end, Streep estimates that an...

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.