Production function for wheat, Microeconomics

Production Function for Wheat

*  Farmers should choose between a capital intensive or labor intensive technique of production.

Isoquant Describing Production of Wheat

128_production of wheat.png

*  Observations:

 1) Operating at A:

  • L = 500 hours and K = 100 machine hours.

 2) Operating at B

  • Increase L to 760 and decrease K to 90 MRTS < 1:


3) MRTS < 1, hence the cost of labor should be less than capital in order for the farmer substitute labor for capital.

4) If labor is expensive, farmer would use more capital (such as U.S.).

5)  If labor is inexpensive, farmer would use more labor (such as India).

Posted Date: 10/12/2012 1:51:58 AM | Location : United States







Related Discussions:- Production function for wheat, Assignment Help, Ask Question on Production function for wheat, Get Answer, Expert's Help, Production function for wheat Discussions

Write discussion on Production function for wheat
Your posts are moderated
Related Questions
Q. Definition of labour force? Labour Force:Total population of working-age people who are willing and able to work and who thus have ‘entered' labour market. Labour force incl

1.  National Marine Fisheries Service is considering closing a large area of federal waters to fishing in Alaska due to negative interactions of fishing with endangered Steller sea


Q. Role of Monetary Policy? Monetary Policy: Monetary policy reflects the use by government and government agencies (mainly the central bank) of interest rate adjustments and o

IN THE LABORATORY OXYGEN IS PRODUCED BY HEATING POTASSIUM CHLORATE ACCORDING TO THE EQUATION 2KCLO3-2KCL+3O2. WHEN 298g OF KCLO3 IS HEATED IT GAVE 181.2g OF OXYGEN. GIVEN THAT 32g

so this question asks for the deadweight loss if an institution decided to provide this service free of charge. I was wondering if this will achieve the socially efficent level or

Briefly explain the main macroeconomic objectives of governments. Definition of macroeconomic issues Growth a)      Enhance in national income per unit of time, a

Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami

Draw an indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure, this is different.)

When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3.