Rosenberg produces board games using Labour(L) and ma- chines(K) as inputs. His board game production function...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rosenberg produces board games using Labour(L) and ma- chines(K) as inputs. His board game production function is given as follows: Q = f(K; L) = 2L²K Rosenberg faces labour costs of $3 per unit of labour and capital costs of $5 per unit of capital. Rosenberg wants to produce as many board games as possible but only has $1000 at his disposal and is not able to spend more than that. (a) What is the optimal choice of L and K for Rosenberg? How many board games are produced at this amount of L and K?(10 marks) (b) Due to a short supply of labour, labour costs now rise to $5 per unit of labour. What is the new optimal choice for the firm? (5 marks) Rosenberg produces board games using Labour(L) and ma- chines(K) as inputs. His board game production function is given as follows: Q = f(K; L) = 2L²K Rosenberg faces labour costs of $3 per unit of labour and capital costs of $5 per unit of capital. Rosenberg wants to produce as many board games as possible but only has $1000 at his disposal and is not able to spend more than that. (a) What is the optimal choice of L and K for Rosenberg? How many board games are produced at this amount of L and K?(10 marks) (b) Due to a short supply of labour, labour costs now rise to $5 per unit of labour. What is the new optimal choice for the firm? (5 marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these mathematics questions
-
Shortrun Cost Minimization Rosenberg produces board games using LabourL and MachinesK as inputs His board game production function is given as follows Q fK L 15K 3 4 L 1 2 At the end of last year...
-
A cost-minimizing firm's production function is given by Q = LK, where MPL = K and MPK = L. The price of labor services is w and the price of capital services is r. Suppose you know that when w = $4...
-
A firms short- run production function is given by Q = 1/2L2 for 0 L 2 And Q = 3L 1/4L2 for 2 < L 7. a. Sketch the production function. b. Find the maximum attainable production. How much labor...
-
Solve the inequalities and show the solution sets on the real line. -2x > 4
-
There are 90 applicants for a job with the news department of a television station. Some of them are college graduates And some are not; some of them have at least three years experience And some...
-
What types of information would you expect to find in a post-implementation review (PIR)?
-
Lakewood Co. issues \(\$ 100,000\) of \(6 \%, 20\)-year bonds payable that are dated April 30. Record (a) issuance of bonds at par on Nay 31 (b) the next semiannual interest payment on October 31.
-
Why do you think Maury Mills got in the shape it is? What are some of the mistakes you think they may have made in managing their human resources? What would you recommend that Dana and Anne do to...
-
Assume the Oklahoma City Thunder are sold for $520 million. If there is a 35% flat tax rate, how much would a 5-year double-declining balance depreciation of the sale price save them in taxes over...
-
Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect...
-
write in detail about diet and nutrition?
-
Let \(\left\{x_{n}ight\}_{n=1}^{\infty}\) be a sequence of real numbers defined by \(x_{n}=n 2^{-n}\), for all \(n \in \mathbb{N}\). Compute \[\liminf _{n ightarrow \infty} x_{n}\] and \[\limsup _{n...
-
Let \(\left\{x_{n}ight\}_{n=1}^{\infty}\) be a sequence of real numbers defined by \(x_{n}=n^{(-1)^{n}-n}\) for all \(n \in \mathbb{N}\). Compute \[\liminf _{n ightarrow \infty} x_{n},\] and...
-
Let \(\left\{x_{n}ight\}_{n=1}^{\infty}\) be a sequence of real numbers defined by \[x_{n}=\frac{n}{n+1}-\frac{n+1}{n},\] for all \(n \in \mathbb{N}\). Compute \[\liminf _{n ightarrow \infty}...
-
Let \(\left\{x_{n}ight\}_{n=1}^{\infty}\) be a sequence of real numbers defined by \[x_{n}=\left\{\begin{array}{rl}-1 & n=1+3(k-1), k \in \mathbb{N} \\0 & n=2+3(k-1), k \in \mathbb{N} \\1 &...
-
Consider the following diagram of the \(A E\) function and the \(45^{\circ}\) line. a. Suppose the level of actual national income is \(Y_{1}\). What is the level of desired aggregate expenditure? Is...
-
4. Radiation and convection play fundamental roles in establishing the distribution of temperature at Earth's surface and in its atmosphere, but if they were the only physical processes that...
-
Time Travel Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $25,000 to help organize the corporation. Time Travel also issued...
-
The following table shows the average retail price of butter and the Consumer Price Index from 1980 to 2010, scaled so that the CPI = 100 in 1980. a. Calculate the real price of butter in 1980...
-
In Example 2.8 we examined the effect of a 20% decline in copper demand on the price of copper, using the linear supply and demand curves developed in Section 2.6. Suppose the long-run price...
-
Price discrimination requires the ability to sort customers and the ability to prevent arbitrage. Explain how the following can function as price discrimination schemes and discuss both sorting and...
-
An important statistic to consider when using a classical statistical sampling audit plan is the population variability. The population variability is measured by the a. Sample mean. b. Standard...
-
During the course of an audit engagement, Mr. Command, the senior, decided to use non-statistical sampling on a certain substantive test. The sampling plan included the following: Required: a. If the...
-
An auditor selects a preliminary sample of 100 items out of a population of 1,000 items. The sample statistics generate an arithmetic mean of \($60\), a standard deviation of \($6\), and a standard...
Study smarter with the SolutionInn App