Calculate the cost function

Assignment Help Microeconomics
Reference no: EM132136773

Problem: Consider the following production function f(K, L) = 2K + 3L. Suppose w is the wage paid for each unit of labor, and r is the capital return.

a) What kind of returns to scale has this production function?

b) Solve the cost minimization problem when w = 1 and r = 3.

c) What if now w = 3 and r = 1? Solve it.

d) Draw a picture with both cases. Explain the situation in your picture.

e) Calculate the cost function.

f) What type of scale economies does it have?

Reference no: EM132136773

Questions Cloud

Summarise the main argument and the rhetorical situation : In four or five sentences, introduce your chosen article, and summarise the main argument and the rhetorical situation
Development issues relevant to the behavior of MNCs : Are human rights and sustainable development issues relevant to the behavior of MNCs?
Write a paper about the chronological history of terrorism : Describe the linkage / responsibilities between local, state, and federal involvement.
What is meant by the term culture : What is meant by the term culture? what conclusions can you draw regarding the impact of culture on motivation, leadership and human resource management of MNCs
Calculate the cost function : Consider the following production function f(K, L) = 2K + 3L. Suppose w is the wage paid for each unit of labor, and r is the capital return.
The dealership is not legally obligated to sell bill : The dealership is not legally obligated to sell Bill the car for the advertised price because the advertisement is a solicitation of an offer;
Can you or can you not teach ethical behavior : How do you go about teaching it and inculcating it so that it become second nature.
Find the output that minimizes average cost : Find variable cost, fixed cost, average cost, average variable cost,and average fixed cost. (Hint: Marginal cost is given by MC = 8q).
Create a fictional organization : Create a fictional organization (or a real one) for which you will give a presentation.

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain html text editor what is it used for and how does

what is an html text editor? what is it used for and how does it compare to a regular text editor? why are text files

  Compare the healthcare-based factors in the issues

From the e-Activity, compare the healthcare-based factors in the issues that you reviewed that, in your opinion, cause the cost curve of healthcare to shift.

  It is estimated that the maintenance cost

It is estimated that the maintenance cost on a new car will be 400 the first year. Each subsequent year, this cost is expected to increase by 100.

  Compare alternative healthcare delivery arrangements

Evaluate the efficacy of major types of health clinical outcomes one can use in economic evaluation analysis - Compare and contrast alternative healthcare delivery arrangements

  Which of the following is upward sloping

Which of the following is upward sloping? Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut

  Discuss the new equilibrium price and quantity

Discuss the new equilibrium price and quantity that result from these changes. Can you demonstrate some of these changes graphically?

  What role does economies of scale or scope play in industry

What role does economies of scale or scope play in your industry?

  Explore the concept of cost effectiveness analysis

Explore the concept of cost effectiveness analysis. Then, explain how this might be used to measure overall public health benefit.

  What do you mean by the leontief paradox and explain how

1. define the leontief paradox and discuss how raymond vernons product cycle theory might help explain this paradox.2.

  Functions of short run average variable and marginal cost

Determine the short run average variable cost and the marginal cost functions. Determine the output level that minimizes short run average variable costs

  Describe the economic model of decision making

Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin.

  An effort to move the economy out of a recession

In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take to address expansionary fiscal a..

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