A manufacturing firm''s production function

Assignment Help Microeconomics
Reference no: EM13751292

1. A manufacturing firm's production function is Q=KL+K+L. For this production function, MPL=K+1 and MPK=L+1. Suppose that the price r of capital services is equal to 1, and let w denote the price of labor services. If the firm is required to produce 5 units of output, for what values of w would a cost-minimizing firm use
a) only labor?
b) only capital?
c) both labor and capital?

2. Q=L1/2+K1/2+M1/2. For this production function, the marginal products of labor, capital, and materials are MPL =1/(2 L1/2), MPK =1/(2/K1/2), and MPM= 1/(2M1/2). Suppose that the input prices of labor, capital, and materials are w=1, r=1, and m=1, respectively.
a) Given that the firm wants to produce Q units of out- put, what is the solution to the firm's long-run cost- minimization problem??
b) Given that the firm wants to produce Q units of output, what is the solution to the firm's short-run cost- minimization problem when K = 4? Will the firm want to use positive quantities of labor and materials for all levels of Q??
(c) Given that the firm wants to produce 12 units of output, what is the solution to the firm's short-run cost- minimization problem when K= 4 and L =9? Will the firm want to use a positive quantity of materials for all levels of Q?

3. A hat manufacturing firm has the following production function with capital and labor being the inputs: Q= min(4L, 7K )-that is, it has a fixed-proportions production function. If w is the cost of a unit of labor and r is the cost of a unit of capital, derive the firm's long-run total cost curve and average cost curve in terms of the input prices and Q. 

Reference no: EM13751292

Previous Q& A

  How many unique five-card hands are possible

Question #1  How many nine-digit student identification numbers can be created from letters and numbers if the first four characters must be upper case letters from A to D and the last five must be digits from 0 to 9? Repetition of letters and number..

  Summarize the life cycle of a product (

Summarize the life cycle of a product (Introduction, Progress, Maturity, Decline) and explain how the stage of the life cycle impacts price. Provide two examples of products where you have seen this occur.

  The purpose of this section of the marketing plan

The purpose of this section of the marketing plan is to describe how changes in the business environment will affect the company. This will be achieved by the use of the PEST Analysis, which attempts to review how changes in the political/legal envir..

  Discuss the company''s approach to global expansion

2. Discuss the company's approach to global expansion.3. Do you think Facebook should operate in China even if it means complying with the restric- tions there?  about Facebook's Continued Negotiations in China

  High tech alliance and technology transfers from developed

Must look look into Strategy, competition & analysis (internal&external risk discussion), Global Market (eGlobal & eLocal), Global alliances & cultural influences, government influences and then look into impacts. 10 pages with APA referencing, 10 re..

  Distinctive organizational cultures

Southwest Airlines and Koch Industries are both known for their distinctive organizational cultures, and both have been highly successful and profitable companies. Southwest Airlines is known as a "fun" place to work where socialization and humor in ..

  How does the interviewee handle changes

How does the interviewee handle changes at his/her organization, and what specific challenges has she or he encountered with managers in the past. What advice does your interviewee offer to someone who is looking to become a manager

  Why does the organization change

Respond to the following questions minimum 300 words1. Why does the organization change? What could occur if change is not embraced and not allowed to flourish?2. Describe the leadership role in change. Explain why one style may be better than the ot..

  Discuss the truth in lending act

Discuss the Truth in Lending Act and what role it places in financial and regulatory reports requirements in regards to funds acquisition strategies. What are various important terms which must be disclosed and their meaning?

  Marla santigo is an accountant for at lemnah company

Marla Santigo is an accountant for at Lemnah Company. Marla loves her job and spends countless hours working at the office. She enjoys working on taxes and reviewing financial records. Being an accountant was her dream and she reached hers goal after..

Reviews

Write a Review

 

Similar Q& A

  What theory of profit best reflects the performance

The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?

  Write down the profit maximizing price and output levels

phillips industries manufactures a certain product that can be sold directly to retail outlets or to the superior

  Traditionally how have estimated labour supply elasticities

Traditionally, how have estimated labour supply elasticities differed between men and women? How can economic theory explain this? Outline the relevant empirical evidence from the more recent literature? No more than 1200 words.

  Steady state level of capital

Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.

  1 down on our luck studio has spent 100 million producing

1. down on our luck studio has spent 100 million producing an awful film a depressing story about a miserable person.

  Question 1skyymarley airlines has determined that the price

question 1skyymarley airlines has determined that the price elasticity of demand for two customer segments coach and

  Analysis of a proposed soda taxarticle from the wall street

analysis of a proposed soda taxarticle from the wall street journal entitled soda tax weighed to pay for health

  Effect of events on market

What will be the effect of the following events on the market for French wine and the quantity consumed? Distinguish between the short-run and the long-run impact.

  Bolivia falls into which category of human development

Find out the most recent data for Bolivia that can be used to compute its new human development index (NHDI). Make a table to table to record data/values of different components of NHDI of Bolivia and the year of the data.

  Overcome the demographic shift

What potential solutions would you suggest to your director that might overcome the demographic shift?

  Explain how a franchise could be considered a partnership

Explain how a franchise could be considered a partnership? what make a franchise agreement simpler than a partnership that you would start with another individual?

  Derive relative demand curve relating the relative demand

Consider the following model of trade between Finland and Iceland. Suppose through that those two countries are the only two countries in the world, at least for purposes of trade.  Discover the Autarky relative price of fish in both countries. (i.e ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd