Question: You work at a company whose production function is given by f(k, l) = l + 10k, where l is man-hours and k is machine-hours.

You work at a company whose production function is given by f(k, l) = l + 10k, where l is man-hours and k is machine-hours. Your job is choosing how many hours to run the machines (k), but some other manager chooses the man-hours (l). Your boss requires that you always produce 100 units of output. For any value of l that the other manager chooses, what k should you choose?

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!

Economics fr. 3. (20) Consider a standard Solow growth model that is augmented with labor migration. As is typical, the aggregate production function is given by Y = (AL)" Klo where Y is output, A is...

The sales are $10 million this and expected to grow at 5% in real terms for the next three years. The appropriate nominal discount rate is 10%. The inflation is expected to be 2% per year during the...

Ajax Limited and Brutus, LLC. are the only suppliers of services that calibrate the send/receive GPS tracking equipment on trucks that are used by various trucking companies to monitor their shipping...

A. Profit maximization Suppose a firm's production function is given by f(K, L) = K 1/4 L 1/3 Let rand w denote the input prices for K and L, and p denote the output price. I. Choosing inputs to...

now//You are asked to price some options on KYC stock. KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent,...

1. The production technology of a firm is given by the following equation: Y = 15K .5N.5 Assume K initially equals 25 a. Fill in the first blank column below, showing what the output is per different...

Attempts Average / 4 2. The firm's problem Consider a competitive firm that produces bots. Labor (_) and capital (K) are the only two inputs of production; each unit of labor is paid the market wage...

where a, k and e are positive constants. determine p' (.13) and p\"(sc) Does p(;i:) have a maximum? Sketch a graph of p[;r:). 5. Suppose the tax T a person pays 011 income to is given by T(w) = a(bw...

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Below are the questions Exercise #1. A firm produces output using the technology y = 7 1.000 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and y denotes the...

The finance director of Horiz plc wants to use crypto currencies to trade with customers. A consultant has identified three risks for Horiz plc. 1 Third party transaction costs will be prohibitively...

Norman Co. borrowed $15,000 from the local bank on April 1, 2012, when the company was started. The note had an 8 percent annual interest rate and a one-year term to maturity. Norman Co. recognized...

[ - / 1 1 . 1 1 Points ] SCALCET 9 1 3 . XP . 2 . 0 2 3 . Evaluate the integral. ( Use C for the constant of integration. ) ( s e c 2 ( t ) i t ( t 2 1 ) 6 j t 8 l n ( t ) k ) d t Need Help?

A four-stroke gasoline engine runs at 1800RPM with a total displacement of 150 in. 3 and a compression ratio of 10:1. The intake is at 520 R, 10 psia, with a mean effective pressure of 90 psia. Find...

The effective life of insulating fluids at an accelerated load of 35 kV is being studied. Test data have been obtained for four types of fluids. The results were as follows: (a) Is there any...

Use the experiment described in Problem 5-6 and assume that both factors are random. Find an exact 95 percent confidence interval on as. Construct approximate 95 percent confidence intervals on the...

Find a feasible solution or determine that no feasible solution exists for the following system of difference constraints: X1 X2

A serious, drought-related problem for farmers is the spread of aflatoxin, a highly toxic substance caused by mold, which contaminates field corn. In higher levels of contamination, aflatoxin is...

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...

2. Imagine a real event that was problematic in your past. What images, sounds, emotions, smells and tastes appear? Try to imagine a movie clip of this inci-dent, as it could unfold if the...

5. How can I help others in the network achieve their goals?

6. Bring to mind a situation where you had a strong sense of satisfaction with what you did. Immerse yourself in the situation. i. How do you feel? ii. What do you hear? iii. What do you see?