Question: I need some help on this question. please! Answer the questions below using the following production function and assuming that the prices of K and
I need some help on this question.
please!

Answer the questions below using the following production function and assuming that the prices of K and L are r = $75 per unit and w = $25 per unit, respectively. Round your answers to two decimal places as needed. Q(L, K) = K0.75L0.25 a. Is this production functiOn a short-run or long-run production function? How can you tell? (2 points) 13. Suppose the producer employs 50 units of capital and 50 units of labor. How many units of output will be produced, and how much is the total cost of production? (2 points) c. What is the cost-minimizing input combination (L', K*) for output level Q = 100'? How much is the total cost of production? (4 points) d. Suppose that in the short run the level of capital is fixed at K = 99. What is the producer's cost-minimizing choice of labor, 1.", if it still wants to produce Q = 100? How much does the bundle K = Q, L = L\" cost? (3 points) e. Suppose that in the short run the level of capital is xed at K = 101. What is the producer's cost-minimizing choice of labor, L *, if it still wants to produce Q = 100? How much does the bundle K = Q, L = L* cost? (3 points) f. At each of the three input combinations you found in parts (c), (d), and (e), what is the marginal rate of technical substitution between labor and capital, MRTSLK = %? (3 points) K
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
