Question: (a) An electronic firm's production function is Q = 5LK, where Q = output, L is the amount of labor it uses per period, and

(a) An electronic firm's production function is Q = 5LK, where Q = output, L is the amount of labor it uses per period, and K is the amount of capital it uses per period. The price of labor is $1 per unit of labor, and the price of capital is $2 per unit of capital.

Marginal product of labor is 5K

Marginal product of capital is 5L

If the firm wants to produce 20 units of output and does so with 2 units of labor and 2 units of capital, is it using the cost minimizing quantity of labor and capital? If not, what should it do (more labor and less capital or more capital and less labor)? You may assume that fractional quantities of labor and capital are available and can be used (for example the firm can hire 1.5 workers or 2.4 units of capital). Please explain and show all calculations.

(a) An electronic firm's production function is Q = 5LK, where Q

Please ll in all the blank cells in the abnve table

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!

Calculate the NPV of the proposed overhaul of the Vital Spark, with and without the new engine and control system. To do the calculation, you will have to prepare a spreadsheet table showing all...

1. ( 10 points ) (a) An electronic firm's production function is Q = 5LK, where Q = output, L is the amount of labor it uses per period, and K is the amount of capital it uses per period. The price...

An electronic firm's production function is Q = 5LK, where Q = output, L is the amount of labor it uses per period, and K is the amount of capital it uses per period. The price of labor is $1 per...

i. (10 points) (a) An electronic lm's production function is Q = 51K, whcrc Q = output, L is thc amount oflabor it uses per period, and K is the amount of capital it uses per period. The price of...

calculate average product for missing on the table ? Questi t-run, we assume that capital is a fixed input and labor is a variable input, so the firm can increase by increasing the amount of labor it...

Hello! I am having a really tough time starting this problem on short-run cost functions. I've attempted to use the short-run (total) cost function of STC but can't seem to understand how to solve it...

An electronics plant's production function is Q = 5LK, where Q is its output rate, L is the amount of labor it uses per period, and K is the amount of capital it uses per period. The price of labor...

2. You are hired to consult for a firm. They want to know how much of each of sers goodie they should produce. They sell good X in a monopolistically competitive market with the nese demand curve P,...

The following is a list of statements about deterministic finite automata and regular languages. Select all statements from below that are true. Suppose language Lis regular. If a DFA M recognizes L,...

The amount of timber available from a certain type of fully grown tree has a mean of 63400 with a standard deviation of 2500. (a) What are the mean and the standard deviation of the total amount of...

Evaluate the indefinite integral. Cos ( 9 + 7 t ) dt

Manufacturing Income Statement, Statement of Cost of Goods Manufactured Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies...

Barry Company manufactures coats The company accounting records during February show Factory utilities $950 Direct materials used in production $21,650 Direct materials purchased during the month...

6 For each of the following functions, find all local maximum and minimum values. (a) g(x) = x lnx (b) f(t)=2-t+t (c) f(x)=xx+1 (d) h(r) = x e-z Find the inflection points of the following functions,...

On December 31, 2020, Gibbs Co. acquired bonds issued by Walden Co. for $112,290. They have a face amount of $100,000, pay 12% interest, and were purchased to yield 10%. The maturity date is December...

Jamal, Jong and Jacob are the directors of Kosain Bhd (Kosain). The business of the company is to offer management and consultancy services. Each of the directors holds 10% of the companys issued...

Yost-Perry Industries (YPI) manufactures a mix of affordable guitars (A, B, C) that are fabricated and assembled at four different processing stations (W, X, Y, Z). The operation is a batch process...

3. Imagine a real event that brought joy to your past. What images, sounds, emo-tions, smells and tastes appear? Try to imagine a movie clip of this incident, as it could unfold if the circumstances...

7. Imagine yourself in a future situation that you know you do not thrive in. Try to bring with you that feeling of satisfaction from task 6 in the future uncomfortable situation. a. Highlight three...

1. Maintain my own perspective and my opinions