Calculate the level of profits at profit-maximizing level

Assignment Help Business Economics
Reference no: EM131415791

A firm's production function is: Q = K1/2 L1/2. Suppose that capital is fixed at 81 units. If the firm can sell its output at a price of $100 per unit, hire labor at $50 a unit, and rent capital at $10 a unit, how many units of labor should the firm hire to maximize profits? Given your answer, what is the level of output that maximizes profits. Lastly, calculate the level of profits at the profit-maximizing level of labor and output given that capital is fixed at 81 units.

Reference no: EM131415791

Questions Cloud

Examine constitutional protections for defendants prior : You will examine constitutional protections for defendants prior to trial by providing a detailed analysis of the criminal justice process from arraignment to the setting of a trial for a defendant.Your paper must detail how a criminal charge is ..
What is creative destruction : What is creative destruction? Is it important to the economic development?
List five behaviors/skills that would be necessary for child : Identify 5 behaviors that give evidence that initiative has been achieved. List five behaviors/skills that would be necessary for a child to begin school. List 5 obstacles to school readiness
What is the price elasticity of the physician visit : A physician group in Texas has just increased its physician visit fee from 49 to 81. As a result, the volume of the visits has decreased from 2,374 to 614. What is the price elasticity of the physician visit? (hint: using the point estimate formul..
Calculate the level of profits at profit-maximizing level : Given your answer, what is the level of output that maximizes profits. Lastly, calculate the level of profits at the profit-maximizing level of labor and output given that capital is fixed at 81 units.
Our systems of education support an economic agenda : In which ways should our systems of education support an economic agenda? That is, to what extent should these systems prepare people for the job force versus preparing them to think critically?
Describing the medical history : Read the case study given by the professor based on a fictional patient describing the medical history. Assess symptoms. Assess other potential problematic areas of the person's life
International trade : Make a case for and against the acceptance of the Free Trade Area of the Americas (FTAA), which was an agreement proposed to eliminate or reduce the trade barriers among all countries in the Americas, except Cuba. What is the IMF's overall outlook fo..
Identify and discuss one innovation site : Search the Innovation Center Site and identify and discuss one Innovation site (not in Connecticut) award and it's program and expected outcome (do not repeat another student's site)COLLAPSE

Reviews

Write a Review

Business Economics Questions & Answers

  Assume that the inflation free rate

Assume that you borrow $15,000 for five years (annual payments) at a market rate of 5%. Assuming that inflation is 3.5%, what would the equivalent equal annual payment be in constant dollars? What is the Actual dollar amount of a $15,000 constant dol..

  What are the three determinants of macro performance

which of the 3 determinants of macro performance (internal market forces, external shocks, and policy levers) would you consider the most important in terms of gauging the success/failure.

  What economic could be used to demonstrate incentive

What economic example could be used to demonstrate incentives that were used to "nudge" buyers/sellers

  Project management are done in weak matrix organization

Most projects completed using traditional project management are done in a weak matrix organization. Most projects completed in an agile project management framework use a strong matrix or pure project environment. Why is this so?

  Find sallys food demand function

Suppose that Sally’s preferences over baskets containing food (good x), and clothing (good y), are described by the utility function U (x, y) = √x + y. Sally’s corresponding marginal utilities are, 1 MUx=2√x and MUy=1. Find Sally’s food demand functi..

  What is the equilibrium price of bagels

Problems 1–5 are based on the graph below. At a price of $1.50 per dozen, how many bagels are demanded per month? What is the equilibrium price of bagels? What is the equilibrium quantity per month?

  Calculate the annual income effect on hours worked

Suppose you win a lottery, and your after-tax gain is $20,000 per year until you retire. As a result, you decide to work part time at 35 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..

  Was picking up some gemstones for use in the store

Melinda, who works in a jewelry store owned by Cindy, was picking up some gemstones for use in the store. On the way back to the jewelry store, she went through a drive-through fast food restaurant to get a soda. While in line, she negligently bumped..

  What social or ethical argument could you make

If you were a manager of a large manufacturing company and decided to offshore labor-intensive production to another country, how would you justify the decision to your employees and the community

  Satisfied when selecting policy? instrument

Which of the following criteria must be satisfied when selecting a policy? instrument?

  Illustrate what is the opportunity cost of a potholder

Illustrate what is the opportunity cost of a potholder for Martha. What is the opportunity cost of a potholder for Stewart.

  A sample survey to estimate the fast-food market

A sample survey to estimate the fast-food market in a large city was kept small enough to allow repeated follow-up. The high response rate meant that the sample was essentially random. Calculate a 95% confidence interval for the mean of the whole pop..

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