Question: Suppose that the production function is given by: F(L,K) = 2L+3K. You know that w=7 and r=8. To produce Q=18 units of output you should

Suppose that the production function is given by: F(L,K) = 2L+3K. You know that w=7 and r=8. To produce Q=18 units of output you should hire 9 workers and zero capital to maximize your profits.

TRUE OR FALSE

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!

1.Cali and David both collect stamps (x) and fancy spoons (y). They have the following preferences and endowments. U c (x, y) = x c .y c 2 c = (10, 5.2) U D (x, y) = x D . y D D = (14, 6.8) a.Write...

1.A firm's production function is just a function of labor (there is no capital). F(L) = 100L L 2 . a.What is the marginal productivity of labor at L=2? b.What is the average productivity of labor at...

Question 1: Given the following cost function: TC = 1500 + 15Q - 6Q 2 + Q3 i. Determine the total fixed cost for producing 1000 units of output and 500 units of output. ii. What is AFC at: a) 1000...

l. [6 points) Suppose in the short run a perfectly competitive firm has variable cost = 3:11, and MC = q where q is the quantity of output produced. Also, the firm has fixed cost F = 243. a) [3...

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

PLS HELP ME 6. (4p) Consider a Heckscher-Ohlin model with two countries, Home and Foreign, and two factors of production, land (T) and labor (L). Land and labor are used to produce two goods, gadgets...

Using the formulas for the steady state levels of capital and output, compare the capital stock, , and output, , after the drop in the population . (10 points) c. Graph the level of output (y-axis)...

Kindly slove these questions clearly showing your workings A firm uses labor and machines to produce output according to the production function: f(L,K) = 4L(1/2)K^(1/2), where L is the number of...

Please help answer the question. Please answer the first question use the 4 example of answers and templates to answer given. Tq so much for your help. The question is on the first photo on top. The...

Hey! I would appreciate some help with this. Have an exam around the corner and I would like to make sure I understand this part. Thank you so much! PO AccessUH X Bb Homework 5 - 2020 x S hw5.pdf X...

On January 1, 2010, the stockholders equity section of Lopez Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings...

Sharon Usher and Leann Gomez agreed on September 1 to go into business as partners. According to the agreement, Usher is to contribute $30,000 cash and Gomez is to contribute $50,000 cash. Provide a...

Perry, Inc. owns a 9 0 % interest in Brown Corp. During 2 0 1 6 , Brown sold $ 1 0 0 , 0 0 0 in merchandise to Perry at a 3 0 % gross profit. Ten percent of the goods are unsold by Perry at year end....

Relative to civil law, common law has more flexibility because judges have the power only to apply the law because of comprehensive statutes and codes do not have any codes and statut to guide them...

LO3 Describe the commonly used comparative and noncomparative appraisal methods.

LO2 Describe the various purposes of performance appraisals.

List and briefly discuss the various steps in the selection process.