Question: A rm has a production function of q(L;K) = 4L 1=4K 1=4 . (a) Does this production function have increasing, decreasing, or constant returns to

A rm has a production function of q(L;K) = 4L 1=4K 1=4 . (a) Does this production function have increasing, decreasing, or constant returns to scale? (b) Find the factor demand functions (in their simpli ed forms). (c) Find the cost function (in its simpli ed form). (d) This rm is a price taker, and the market price is $40. For w = $4 and r = $25, nd the pro t- maximizing quantity and pro t

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!

Please help answer Problem 4 Tik-Tok uses labor (L) and equipment (K) to produce vintage alarm clocks. Tik-Tok's daily production function is q = LK. a) Does the production function displays...

Problem 3: Very-short-run production Lindt's chocolate factory produces dark chocolate (q) using materials M (cocoa solids, cocoa butter, vanilla extract, soy lecithin, packaging), labor L, and...

I only need help on D, E,F and the next question A,B,C You work for the manager of a small single-product rm. Assume that you have data for your rm on costs, capital rental rate, wages and output....

Suppose a rm has a production function given by Q = K + 21.. Does this production function exhibit increasing, constant or decreasing returns to scale? 0 increasing 0 Constant O Decreasing

Suppose that the production function for compact disc player is Q = 100L0.6 K0.4 Where Q is the total output, L is the quantity of labor employed, and K is the quantity of capital in place.

3. (9 pts) Consider a producer with budget C = 200 who can buy labor L at a wage w = 10 and capital K at a price r = 5. The producer has the following production function F(K,L) = 3K 1/3 2/3 a. (2...

For the following production function: y = K^x L^x a. Show whether the function exhibits constant, increasing or decreasing returns to scale for different parameter values of x. b. Consider the...

A= 7 and B= 8 For the following production function: y = K L" a. Show whether the function exhibits constant, increasing or decreasing returns to scale for different parameter values (of o). b....

Producing jars of "real" maple syrup (q) requires two things: gallons of sugar (x1) and gallons of maple coloring (x2). Big Maple is a monopolist in this market. They turn sugar and maple coloring...

Please help answer fully! Problem 1 Ms. Fox can produce artificial Fur coats using the services of labor and equipment according to the production function q(L,K)= L1/3K2/3 . a) Does this production...

Using information regarding industry advertising-to-sales ratios (see company.news-record.com/advertising/advertising/ratio.html), recommend percentages of sales that advertisers in the following...

10. Prepare journal entries to record each of the following transactions. Assume a perpetual inventory system and use of the gross method. Beginning inventory equals $9,000. June 1 - Sold 50 units of...

3. Write the code for a function named GetState. The function should prompt the user to enter the name of a U.S. state and then return the users response. Then write a statement to invoke the...

You have been given the expected return data shown in the first table on three assets'F, G, and H'over the period 20132016. Using these assets, you have isolated the three investment alternatives...

The adjusted trial balance of Karise Repairs on December 31, 2013, follows. Required 1. Prepare an income statement and a statement of owners equity for the year 2013, and a classified balance sheet...

Condensed monthly income data for Thurber Book Stores are presented in the following table for November 20x 1. (Ignore income taxes.) Additional Information: Management estimates that closing the...

BIKE Company starts with $3,000 cash to finance its business plan of producing bike helmets using a simple assembly process. During the first month of business, the company signs sales contracts for...

Each of the statements that follow violates one or more accounting concepts. State which of these selected qualitative characteristics and accounting conventionsrelevance, faithful representation,...

Identifying How Machine Learning Can Solve Problems What problem would you like your machine learning model to solve? What output would you like your machine learning model to produce? How will you...

1. Background knowledge of the subject and

4. What specific changes in the environment have taken place in relation to the information we have collected?

2. The purpose of the acquisition of the information.