Question: Consider the following production function: Q = 2K + 5L. The price of capital is 10 per unit and the price of labour is 20

Consider the following production function: Q = 2K + 5L. The price of capital is 10 per unit and the price of labour is 20 per unit. The firm wants to produce 100 units of output. The number of units of capital that the firm will hire is

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 solve this Suppose that the production of sports cars is given by the following production function: Q = ( L 1 2 + K 1 2 ) 2 Suppose that the price of labor is $ 1 0 per unit and the price of...

A firm uses capital K and labour L to produce output q according to the following production function: q = J? + L Let w denote the price of each unit of labour and r denote the price of each unit of...

Consider the following problem. Demand: q = 100-p Retailer: marginal cost of selling r = 10 per unit Manufacturer: marginal cost of producing = 40 per unit Neither firm faces any competitor 1....

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...

Q1: (10 points) Let Q(L) = 6L2 - (L3)/6 with costs = 300 + 100L. Let the price of output be P = $4. a) Complete the table on the next page. You can do this in excel or by hand. b) Graph revenues and...

Q1: (10 points) Let Q(L) = 6L2 - (L3)/6 with costs = 300 + 100L. Let the price of output be P = $4. a) Complete the table on the next page. You can excel. b) Graph revenues and costs as a function of...

please answer Suppose a firm has the following production function: Q = 2K L. The marginal product of capital is 24, and the marginal product of labor is 2K. Assume that capital rents for $100 per...

Consider a firm with the following production function: (, ) = ^0.5^0.5. The price of labour (L) is GHS 4 per unit while the price of capital (K) is 5 per unit. For parts (a) - (e) assume that this...

Consider the following production function for three firms operating in the same industry using capital ( K ) and labor ( L ) as inputs. Firm E Q = K ^ 0 . 7 L ^ 0 . 3 Firm F Q = K L ^ 2 For each...

Practice question 1 Suppose a firm has the following short run cost function: C = 20c]2 + 1280 1. Suppose price = $500. How much output does this firm supply to the market? 2. Calculate total revenue...

The Shamrock Corporation uses an injection molding machine to make a plastic product, 239, after receiving firm orders from its customers. Below are the average waiting time and manufacturing cycle...

Evans Technology has the following capital structure. Debt ............. 40% Common equity ....... 60 The aftertax cost of debt is 6 percent; and the cost of common equity (in the form of retained...

7. Argyle is a large, vertically integrated firm that manufactures sweaters from a rare type of wool produced on its sheep farms. Argyle has adopted a strategy of selling wool to companies that...

Rodriguez Corporation issues 6 , 0 0 0 shares of its common stock for \ $ 1 1 0 , 3 0 0 cash on February 2 0 . Prepare journal entries to record this event under each of the following separate...

The role of life: It consists of your own service to yourself.

Competence: What knowledge, skills and attitude do I have towards what I am going to do?

1. Imagine a real situation in your workplace or home situation, where you have given another person feedback on something he has done. a. What was your intention? b. How was the feedback perceived?...