1. You work for a company that bids on government contracts for business. This entails promising...

 

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1. You work for a company that bids on government contracts for business. This entails promising to deliver a certain quantity of goods for a promised price. These are specialized top-secret goods, and the government contract stipulates they are not to be sold to civilians or other governments. a. For this problem are you more interested in the profit maximizing quantities, or the cost minimizing quantities? = b. If production of this top-secret good is given by q problem you are interested in solving. kl set up the c. If the government wants to order 5 units, and labor costs w = 24 and cost of capital is r = 1.2, how much capital do you use for the job? Show two different ways to find optimal labor. = d. It turns out that you only have five units of relevant capital k 5, and obtaining more of these specific machines, or selling what you currently have, would put you behind the contract deadline. How much labor do you hire in this case? By how much does your cost of production increase? 1. You work for a company that bids on government contracts for business. This entails promising to deliver a certain quantity of goods for a promised price. These are specialized top-secret goods, and the government contract stipulates they are not to be sold to civilians or other governments. a. For this problem are you more interested in the profit maximizing quantities, or the cost minimizing quantities? = b. If production of this top-secret good is given by q problem you are interested in solving. kl set up the c. If the government wants to order 5 units, and labor costs w = 24 and cost of capital is r = 1.2, how much capital do you use for the job? Show two different ways to find optimal labor. = d. It turns out that you only have five units of relevant capital k 5, and obtaining more of these specific machines, or selling what you currently have, would put you behind the contract deadline. How much labor do you hire in this case? By how much does your cost of production increase?

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Given function Y kL We will find the marginal output of both la... View the full answer