Production functions for goods are function of labor-capital

Assignment Help Business Economics
Reference no: EM131092336

An economy has a total of 320 units of labor and 80 units of capital to use on the production of 2 goods. The production functions for the goods are a function of the labor and capital used in each process. Specifically:

x= F(l,k) = (l*k)^.5

y= G(l,k) = 5(l*k)^.5

Explain why at any point on the PPF, each firm always has 4 times more labor than capital. If this is correct, then both the quantity of x and y can be written soley as a function of Kx. Find these functions, then use them to prove that the PPF function for this economy is y = 5x – 800.

Reference no: EM131092336

Derive the indirect cost and the indirect profit function

Derive the indirect cost and the indirect profit function associated with the two factor Cobb-Douglas Production function. Explain the role of Lemmas in your derivation and wh

National bureau of economic research

Select an organization your team is familiar with or an organization where a team member currently works. Create a 15- to 20-slide Microsoft® PowerPoint® presentation to prese

Government has imposed a per-unit tax

The inverse demand in a Cournot duopoly is P = a − b(Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per-unit tax of $t on each unit sold

After reading about the history of welfare

After reading about the history of welfare in the USA, describe in your own words how our current welfare system came to be. What are your thoughts about Sweden's welfare syst

Explain as they inconsistent with each other

In a market economy, every resource will tend to be paid according to its marginal product. Highly productive resources will command high prices, whereas less productive res

What else might or might not change that affects profit

To increase a company’s performance, a manager suggests that the company needs to increase the value of its product to customers. Describe three ways in which this advice migh

Cost-benefit analysis of cash management

City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. If City Farm

What trade theories support the recent rise

Market size, location, and openness to trade can help explain why some markets are developing faster than others. In your opinion, what trade theories support the recent rise

Reviews

Write a Review

 
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