Question: Consider the production function f (K, L) = LaKa. Let the price of labor and capital equal 1. a) Determine the marginal product of labor

Consider the production function f (K, L) = LaKa. Let the price of labor and capital equal 1. a) Determine the marginal product of labor and the marginal product of capital. b) Determine the "bang for the buck" equation. c) Determine the cost function when a = 1, a = 1/2, and a = 1/4. Sketch each of the cost functions and interpret them with respect to returns to scale

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!

Q1. [20 pts] Are the following statements true or false? Explain your reasons in one or two sentences. (a) [5 pts] Let A = and b= OT CO NO 2 Multiplying the second row of A by 2 and adding the first...

Question 1 (total 15 points}. A rm has a production function: f (K . L} = EDLKD'E + LEE 2 LEKE a. What is its short-run production function if capital is xed at K=4'? b. What are the fum's marginal...

Answer all the questions below and provide an explanation 5. Sam, who is 55 years old and has been a steelworker for 30 years, is unemployed because the steel plant in his town closed and moved to...

What is the 1. Consider a firm with the Cobb - Douglas production function f (K, L) = 4K 1/2 L 1/3, where K denotes units of capital and L represents units of labor. Assume that the firm faces input...

HeHi Help 1. Assume that the market for steel 1s competitive. The inverse demand curve for steel 13 P 12ll- Q and its inverse supply (i. e. ,industry marginal cost) curve is P: Q + 20, where P is...

Let X be a random variable representing the present value of the benefits of a whole of life assurance, and Y be a random variable representing the present value of the benefits of a temporary...

Please check my work, and solve problem 3 Problem 1. In less than 25 words, explain the meaning behind the concept of: Marginal cost function measures the change in cost of production when producing...

Question 8: Consider the following production function f (K, L) = 40.75 0.25 The isocost function is C = 10K + 2L a. Find the marginal product of both inputs b. What ratio of capital to labor...

1.Suppose a hypothetical economy has the following production function: Y = F(L,K) = L + K a.Calculate the Marginal Product of Capital b. Calculate the Marginal Product of Labor c.Is this production...

please can provide explanation on the firm return of scale 4. (27 points) A firm uses labor, denoted by Z, and capital, denoted by k, to produce skateboards. The firm's production function is f(k, l)...

An astronomical unit (AU) is the average distance between Earth and the Sun, approximately 1.50 x 108 km. The speed of light is about 3.0 x 108 m/s. Express the speed of light in astronomical units...

George and Margaret Wealthy are in the 48% tax bracket, considering both federal and state personal taxes. Norman Briggs, the CEO of Community General Hospital, has been aggressively pursuing the...

Pretend you are AT 2 , your company's pay period ending is Jul 1 3 and Pay day is July 2 0 , what is your remittance due date? Use payroll Calendar provided in the book. * 1 point Jul 2 5 Jul 3 1 Jul...

For each of the following molecules, (i) write the valence electron configuration (Your answer should be in a fom similar to (o2s), which is the valence configuration for Li) and (ii) detemine if the...

When ammonia gas (NH3), react with oxygen, gaseous nitric oxide (NO) and water vapor are collected. How many liters of NO can be produced from 12.0 L oxygen and 10.0 L ammonia at constant pressure...

Determine the centroid of the objects below (1) 250 mm 200 mm 150 mm 100 mm 150 mm 150 mm (2) 3" 4" All thickness t = 0.5"

Write pseudo code for the goal-based and utility-based agents.

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

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.

1. What is the meaning of the information we are collecting?