Question: Input prices are w = 3, and r = 2, and production function is f(K,L)= 10KL. Given the production function , MPL=10K and MPK=10L. What

Input prices are w = 3, and r = 2, and production function is f(K,L)= 10KL. Given the production function, MPL=10K and MPK=10L. What is the least cost input combination required to produce 60 units of output? How would input usage and total cost change if capital is fixed at 2 units?

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!

please help Question 1: Consider a modified version of the continuous-time Solow growth model where the aggregate production function is F (K, L, Z) = L KZ 1 , where Z is land, available in fixed...

A firm has a production function Q = F (K, L) with constant returns to scale. Input prices are r = 2 and w = 1. The output- expansion path for this production function at these input prices is a...

1. A firm's analysts estimate that the firm can manufacture a product according to the production function : Q = F (K ,L) = K 3/4 L 1/4 a. Calculate the average product of labour, APL, when the level...

Q1. In a perfectly competitive market, state the condition (clearly) that causes firms to enter the market? When does the entry and exit of firms from the perfectly competitive industry end? (4...

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...

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...

. Provide solutions to the following economic questions. Chapter 8 Pricing strategies This chapter teaches of different pricing strategies for your products or services and shows how these can...

This problem will require that your review the discussion of marginal revenue product (MRP) and profit maximization. This problem will require that your review the discussion of marginal revenue...

Consider again the two ways in which we can view the producers profit maximization problem. A: Suppose a homoethetic production technology involves two inputs, labor and capital, and that its...

Consider a firm with the following Cobb-Douglas product function for labor and capital q = 3L 1/4 K 3/4 Find the marginal rate of technical substitution for this firm. Solve the firm's...

One of the fust Internet-based groceries home delivery businesses was Homegrocer.com. In 1998, Mike Donald, president of Concord Sales, one of the largest food brokers in B.C., and two partners...

In December, 1993, Metallgescellschaft AG revealed publicly that its "Energy Group" was responsible for losses of approximately $1.5 billion, due mainly to cash-flow problems resulting from large oil...

Mr. and Mrs. Richardson hope to send their daughter to college in thirteen years. How much money should they invest now at an interest rate of 8% per year, compounded continuously , in order to be...

Consider a sampling plan with sample size n = 15 and acceptance number = 1. a. Calculate the probability of lot acceptance for fractions defective p = .1, .2, .3, .4, and .5. Sketch the operating...

Functionally, how do closed-loop systems differ from open-loop systems?

Look for articles related to supply chains online or at Fortune, Bloomberg Business-week, or CNN. How do they relate to the primary topics discussed in this chapter? If your university has access to...

Elements in the same group of the periodic table often form oxyanions with the same general formula. The anions are also named in a similar fashion. Based on these observations, suggest a chemical...

An experiment using a randomized design was conducted by the Apple Appliance chain of 300 retail stores. Four levels of advertising provided the experimental treatment: none, low, medium, and high....

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

Do not pay him, wait until I come

Do not get married, wait until I come, etc.

Do not come to the conclusion too quickly