Question: Two garments factories produce output according to the same production function q=k4 where qis output, kis capital and lis labour. However, Factory 1 uses

Two garments factories produce output according to the same production function q=k4

Two garments factories produce output according to the same production function q=k4 where qis output, kis capital and lis labour. However, Factory 1 uses more labour than Factory 2 so that = 1600 and 1=1000. The total amount of capital (i.e. the number of machines) available is 200. Find (a) The outputs of each of the two factories in terms of capital. (b)The outputs of each of the two factories if the available capital is divided equally between them. (c) The outputs of each of the two factories if the available capital is divided efficiently between them.

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ANSWER A6... View full answer

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 Finance Questions!

A Verilog testbench code is necessary to test the functionality of the design. Select one: O True O False

Question 5 Mutually Exclusive events Not yet answered Select one: Marked out of a. Does not contain any common sample point 1.00 P Flag question O b. Contain all sample points O c. Contain all common...

The answers must be typed in the Case Study Template, Cost Accounting Approaches: The Lean Success Case Author: Bassima Hout Online Pub Date: January 04, 2017 | Original Pub. Date: 2017 Subject:...

Type the answer in the template, and all information in the case profile. Cost Accounting Approaches: The Lean Success Case Author: Bassima Hout Online Pub Date: January 04, 2017 | Original Pub....

download the...

Financial crisis analysis. Find a current (within the last year) article on a company that has been faced with a significant financial crisis or challenge. It could be downsizing, starting up,...

Chapter 1 Location \"Location, Location, Location!\" Chapter Objectives On completion of this chapter the reader will understand: The influence that location has on occupancy The relationship between...

Unit 2: Designing the Operations Designing the operations of an organization or your department - precedes operational management. For .ll _ . example, suppose a wallet manufacture's mission is to '...

uestion: 1. IN A STOCK ACQUISITION ACCOUNTED FOR BY THE EQUITY METHOD, A PORTION OF THE PURCHASE PRICE OFTEN IS ATTRIBUTABLE TO GOODWILL OR TO SPECIFIC ASSETS OR LIABILITIES. HOW OR UNDER WHAT BASIS...

This in class activity is to help you start reviewing the topics that were covered throughout the course and prepare you for the final exam. In groups of 4 or 5 you will be asked to review the...

1.How do I identify my target market? 2.What are the key factors for a successful business plan? 3.How can I improve my companys cash flow? 4.What are the most effective ways to market a small...

1.What is the Renaissance, and why is it significant in art history? 2.How does Romanticism differ from Neoclassicism in art? 3.What is the significance of the Mona Lisa in art history? 4.How did the...

Question 1: What is cultural relativism, and how does it influence the study of cultures?

How does the concept of hegemony relate to culture?

a 3 phase induction motor is wound for poles and is supplied from 3 phase 50 Hz system .calculate 1. the synchronous speed,2.speed of the motor when slip is .04 and 3.the rotor frequency when the...

You are a shareholder in a business that owns real estate assets. The business earns $5,000before taxes. Once any taxes required are paid at the business level, the business will distribute the rest...

Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...

The given vectors form a basis for R 2 or R 3 . Apply the Gram-Schmidt Process to obtain an orthogonal basis. Then normalize this basis to obtain an orthonormal basis. 0 X1 |, X2 2

Find the outer product form of the SVD for the matrix in the given exercises. Exercise 7 and 17 Data From Exercise 7 and 17 -2 0

Determine which of the matrices are exchange matrices. For those that are exchange matrices, find a non-negative price vector that satisfies equation (1). 0.1 0.6 0.4 0.9

Ronaldo Company's record of transactions concerning part VF5 for the month of September was as follows. Instructions a. Compute the inventory at September 30 on each of the following bases. Assume...

The management of Tritt Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO...

LoBianco Company's record of transactions for the month of April was as follows. Instructions (Round unit price averages to four decimal places.) a. Assuming that periodic inventory records are kept,...