Question: For the production function Q = K%251L%75, the MPL = 0.75K%25L~925 and the firm is stuck with K = 40. The price of the good

For the production function Q = K%251L%75, the MPL = 0.75K%25L~925 and the firm is stuck with K = 40. The price of the good is P = 8. The wage is W = 2. (a) What is the profit-maximizing number of workers? (b) What is the firm's output? What are its units? (c) What is the firm's revenue? What are its units? (c) Suppose the firm is making zero profit. Find the firm's total costs and its capital costs

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!

Question 1 (2 points) Lilly is the price-taking owner of an apple orchard. The price of apples is high enough that Lilly is earning positive economic profits. In the long run, Lilly should expect...

. Kindly assist me to answer. Firm Optimization 6. (8 points) Suppose a firm uses capital (X), labor (L), and energy (E) to produce output (Q). In the short-run, the firm cannot adjust its capital...

Explain in short details please 54. If TR is 75Q - 4Q-, MR is: (a) 75 (b) 75 -8Q (c)75 Q -4 (d) None of these 55. Given TC = Q' + 7Q + 23, what is 2Q + 7: (a) AC (b) minimum TC (c) maximum TC (d) MC...

answ There are 10 potential entrants into the market for tomatoes. All tomato growers are identical. They face a fixed cost of 500 if they choose to enter the market and then have a marginal cost of...

ITS man explain all QUESTIONS for the Written Analysis General requirement: Assume you are addressing some concerns by the board of directors by answering the following questions listed in the...

explain all 1. (55 points) Egbert consumes only axes (X) and mead (Y ). His utility function is U = XY , his income is I and the prices of axes and mead are pXand pY respectively. (a) What is...

. Solve the following attachments. 3. The market illustrated below has inverse demand p(Q) = 130 - 30 and industry-wide marginal cost MC(Q) = 10 + 2Q. If production is competitive, this is the market...

1. Suppose there is an electric bike shop that faces the following demand function Q = 250 - .25 p + 4 ps , where Q is the quantity of e-bikes, p is the price of an e-bike, and ps is the price of a...

Answer these correctly. Firm Optimization 6. (8 points) Suppose a firm uses capital (K), labor (L), and energy (E) to produce output (O). In the short-run, the firm cannot adjust its capital stock....

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

A companys next dividend will be $3.00. Its dividend growth rate is expected to be constant at 20.00% for 2 years and 25% for two more years after which dividends are expected to grow at a rate of...

How might oxygen concentration of interstitial water be related to the grain size of the sand or mud sediment? How might the oxygen concentrations of tide pools in sheltered bays compare to those on...

When studying the simultaneous responses to two categorical variables, you should construct a: (a) histogram (b) pie chart (c) scatter plot (d) cross-classification table

Please discuss the need for change management principles during a merger or acquisition. Especially, how will employees feel? Do you have a personal experience?

1. To gain insight about the information processes operating in a communication process.

4. As your starting point, take two everyday decisions you have made during the past year. Discuss these decisions based on the following question: Why do you think your decisions may have been wrong?

1. To provide an understanding that social facts are mentally constructed and do not exist as an objective reality.