Question: Exercise 21.4 An efficient small firm has production function q(k, 1) = k1/5/1/5, and the unit costs for capital and labour are v = 2

Exercise 21.4 An efficient small firm has production function q(k, 1)

Exercise 21.4 An efficient small firm has production function q(k, 1) = k1/5/1/5, and the unit costs for capital and labour are v = 2 and w = 3. Find its supply set assuming that there is a limit L on its production level

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 Accounting Questions!

1. In the market of cars, there are two firms operating. The Industry Demand Curve is a function of the outputs being produced by both firms, and is given as: P = 240(X1+X2), where X1 and X2 are the...

6. An efficient small firm has production function q(k, 1) = k1/411/2, and the unit costs for capital and labor are v = 2 and w = 3. Find its supply set assuming that there is a limit L on its...

6. An efficient small firm has production function q(k, 1) = k1/411/2, and the unit costs for capital and labor are v = 2 and w=3. Find its supply set assuming that there is a limit L on its...

tax Consider the market for apple juice. In this market, the supply curve is given by QS = 10PJ 5PA and the demand curve is given by QD = 100 15PJ + 10PT , where J denotes apple juice, A denotes...

1. (21 points) Suppose a small firm employs Capital (K) and labour (L) at its !" production of output. The production function of the firm is: = 5 + 10 K + 100#.%. Assume that K=25 in the short run....

Exercise 1 A firm is faced following production function: q = K5L5 (which is the same as: q = \\/K\\/L). The price of K and L are respectively r= 90 and w = 10. A firm is producing in a good in the...

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...

This question is about firms and cost functions, 1. [Duality in production theory] Consider a firm with production function q = VE, using one input (e.g., labor) to produce units of output q. The...

Economics questions... . Suppose that a market is composed of two firms that simultaneously choose quantities. Firm 1 has 22 a cost function C1(q1) = q1^2. Firm 2 has a cost function C2(q2) =...

1. (27 points) For each of the following production functions, sketch a representative isoquant (2 points). Calculate the marginal product for each input, and indicate whether each marginal product...

Repeat Problem 1 to determine the percentage return on your investment but in this case suppose the price of the stock falls to $7.50 per share. What generalization can be inferred from your answers...

Digital Ltd buys calculators for $10 each plus GST and sells calculators for $33 each including GST. Record the following transactions under both perpetual and periodic inventory systems: 1 July Buys...

Write a complete C + + function that does the following: Prompts the user for a positive integer greater than or equal to 3 . Force the user to enter a valid input. Write a recursive function called...

In substituted filing, the employer files the BIR Form 1 7 0 0 for their employees.TRUE OR FALSE

=+5. How can you show them their personal benefits?

=+7. How does it enhance their lifestyle?

=+Examine one long-running, multimedia campaign like Monster.com Monkeys, Absolut, Coke Polar Bears, e-Trade Talking Babies, and so on. a. Identify the main idea in the campaign. b. Decide the...