Positive amount of capital, Mechanical Engineering

Assignment Help:

A paint manufacturing company has a manufacter function Q = K+ √L. For this manufacter function MPK = 1 and MPL = 1=(2√L). The rm faces a price of labor w that equivalent $1 per unit and a price of capital services r that equivalent $50 per unit.

a. Show that the rm's cost-minimizing input combination to produce Q = 10 involves no use of capital. (Hint: this is a corner solution.)

b. What must the price of capital down to in order for the rm to use a positive amount of capital, keeping Q at 10 and w at 1?

c. What must Q enhance to for the rm to use a positive amount of capital, keeping w at 1 and r at 50


Related Discussions:- Positive amount of capital

Rigid joints, Solve the support reactions at A and D by using the force met...

Solve the support reactions at A and D by using the force method. A is a fixed support; B and C are rigid joints; and D is a pin support. EI is constant for all members.

Determine the work transfer, If the expression is quasi-static, determine Q...

If the expression is quasi-static, determine Q, ΔU and W for the process. In another process the same system expands according to the similar pressure- volume relationship and f

Electron beam welding process and its applications, ELECTRON BEAM WELDING P...

ELECTRON BEAM WELDING PROCESS AND ITS APPLICATIONS   Electron Beam Welding (EBW) is one of the advanced welding technologies required for the precision welding applications

Angular dimensions-autocad, Angular Dimensions There is only one comman...

Angular Dimensions There is only one command in this section and it is used to annotate angular measurements. The Angular Dimension Command The Angular command is amazi

Wet h2s corrosion, There is risk of wet H 2 S corrosion in all emulsion and...

There is risk of wet H 2 S corrosion in all emulsion and gas lines from the Inlet Separator up to and including the Treater. Full compliance to NACE is highly recommended to contro

Explain asphalt paving machine, Explain Asphalt paving machine In the l...

Explain Asphalt paving machine In the laying of asphalt pavement roadways, it is common practice to utilize Floating screed type paving machines. These machines typically inclu

Illustrate theories in planning a machining sequence, Illustrate theories i...

Illustrate theories in planning a machining sequence A component requires several machining operations to bring it to a final shape. The sequence of these operations are arran

Example of support reaction, Example of support reaction: A fixed cra...

Example of support reaction: A fixed crane of 1000Kg mass is to lift 2400Kg crates. It is held in place by pin at point A and a rocker at point B . the C . G . is located

Derive the stability condition of a four wheel vehicle, Derive the stabilit...

Derive the stability condition of a Four wheel Vehicle AND Two wheel Vehicle moving in a curved Path? Explain with working, measurement and construction of brake power by Rope b

Write Your Message!

Captcha
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