Given a Cobb-Douglas production function Q (L, K) = 10.00L0.600K0.500 where L is labor (i.e. workers)...

Transcribed Image Text:

Given a Cobb-Douglas production function Q (L, K) = 10.00L0.600K0.500 where L is labor (i.e. workers) and K is capital (i.e. machinery, tools) (A) (5 Points) Please fill in the empty 7x7 matrix cells -with proper values in Table Ch6.Production Units of K 7 6 5 4 3 2 1 Units of L => 20.00 1 Table Ch6.Production in the Long-run (LR) Total Product (Q) = f (X, Y) (in maxtrix cells) 30.31 2 38.66 45.95 3 4 52.53 5 58.60 64.28 6 7 (B) (3 Points) Given a budget line (or Isocost Curve) of M = PLL + PKK where Money budget (M) = $100.00 per hour PL = Prices of Labor (i.e. wages) = $20.00 per worker/hour Pk = Prices of Capital (i.e. interests plus costs of K) = $10.00 per unit of equipment in an hour Using Excel, draw the firm's isocost line -with labor (L) and capital (K) on a cartesian (i.e. XY) plane - respectively. (C) (2 Points) To maximize Q(L, K) with quantities of L and K in Part A - given a budget M = PLL + PK in Part B. How many units of L and K should the firm employed with its budget exhausted -in order to produce the maximum output? REQUIRED: Answered numbers of worker and capital must be in integers from 1 to 7 (not in decimals). Given a Cobb-Douglas production function Q (L, K) = 10.00L0.600K0.500 where L is labor (i.e. workers) and K is capital (i.e. machinery, tools) (A) (5 Points) Please fill in the empty 7x7 matrix cells -with proper values in Table Ch6.Production Units of K 7 6 5 4 3 2 1 Units of L => 20.00 1 Table Ch6.Production in the Long-run (LR) Total Product (Q) = f (X, Y) (in maxtrix cells) 30.31 2 38.66 45.95 3 4 52.53 5 58.60 64.28 6 7 (B) (3 Points) Given a budget line (or Isocost Curve) of M = PLL + PKK where Money budget (M) = $100.00 per hour PL = Prices of Labor (i.e. wages) = $20.00 per worker/hour Pk = Prices of Capital (i.e. interests plus costs of K) = $10.00 per unit of equipment in an hour Using Excel, draw the firm's isocost line -with labor (L) and capital (K) on a cartesian (i.e. XY) plane - respectively. (C) (2 Points) To maximize Q(L, K) with quantities of L and K in Part A - given a budget M = PLL + PK in Part B. How many units of L and K should the firm employed with its budget exhausted -in order to produce the maximum output? REQUIRED: Answered numbers of worker and capital must be in integers from 1 to 7 (not in decimals).

Answer rating: 100% (QA)

A CobbDouglas Production Function The CobbDouglas production function is given as Q 1000L0600K0500 F... View the full answer