. In an economy, the total output of all the firms is described by Y = 8 * K^0.25 * L^0.75. For it, The price level is P=20 and the cost of a unit of capital is R=6. There are L=10 workers in the economy. The payments for capital, or the capital bill, amount to RK=752 in the economy. Find the payments for wage, or wage bill, WL, in the economy
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2. In an economy, the total output of all the firms is described by Y = 8 * K^0.25 * L^0.75. For it,
The price level is P=20 and the cost of a unit of capital is R=6. There are L=10 workers in the economy.
The payments for capital, or the capital bill, amount to RK=752 in the economy.
Find the payments for wage, or wage bill, WL, in the economy
To find the wage bill, we must first find total output (Y) and then subtract the capital account (RK) to get total payments to labor (WL).
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- 5. A company that produces auto parts has a production function of Q = 300 L-75 K-5. %3D If L= 250 and K= 25, what is the output of auto parts? If L increases to 350, what is the output of auto parts? What does the change in output show regarding labor as a factor of production?A firm's production function is: q = 20L1/2K1/2 where q is the firm's total product, L is the quantity of labor employed, and K is the quantity of capital employed. The price of labor is $25 per unit and the price of capital is $100 per unit. a. What is the equation for the marginal product of labor? b. What is the equation for the marginal product of capital? c. Given the price of labor is $25 per unit and the price of capital is $100 per unit, what is the cost-minimizing combination of capital and labor that can produce 800 units of output?▪You have fulfilled your dream by buying a McDonald’s franchise. You start hiring employees and come to realize that the first employees you hired were extremely productive, but every additional person you hired seemed to be less productive. ▪Why does that occur? Are the last people you hired just lazy? ▪The capital is fixed in the short run, but you can change your labor in the short run. ▪You decide to calculate the marginal product and the average product of your business.
- Firm XYZ produces specialty widgets using labor and capital. The table below shows the productivity of both resources. The initial cost of a worker is $10 and the cost of capital is $20. Workers Total Product (Labor) Marginal Product of Labor Marginal Product of Labor per dollar W = $10 Marginal Product of Labor per dollar W = $5 Capital Total Product (Capital) Marginal Product of Capital Marginal Product of Capital per dollar P = $20 0 0 - - 0 0 - - 1 500 500 1 1,000 1,000 50 2 900 400 2 1,900 900 45 3 1,200 300 3 2,700 800 40 4 1,400 200 4 3,400 700 35 5 1,500 100 5 4,000 600 30 a. Complete the Marginal Product of Labor per dollar when the wage is $10. b. When the wage is $10 and the cost of capital is $20, what is the least cost method for producing at least 2,200 specialty widgets? unit(s) of labor and unit(s) of capital. c. Suppose the wage rate falls to $5. Complete the Marginal Product of Labor per dollar when the…2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of workers), and H is human capital (the number of college degrees among the workers). The production function Y = K2/6 L3/6 H1/6 a) Derive an expression for the marginal product of labor. How does an increase in the amount of human capital affect the marginal product of labor? (Hint: The marginal product of labor MPL is found by differentiating the production function (Y) with respect to labor (L)) b) Derive an expression for the marginal product of capital. How does an increase in the amount of human capital affect the marginal product of capital? (Hint: The marginal product of capital MPK is found by differentiating the production function (Y) with respect to capital (K)).Suppose that the marginal product of labor for a local bakery is 120 units per day and the price of labor is $10 per day. Instructions: Enter your answers as a whole number. a. What does the least-cost rule say that the ratio of the marginal product of capital to the price of capital should be? Book b. Now suppose that the marginal product of labor is 120 units per day, the price of labor is $10 per day, and the price of capital is $3 per day. What does the least-cost rule say that the marginal product of capital should be? Print References
- Q5. A bicycle manufacturer in China currently employs 40 production workers and five supervisors and produces . The marginal product of the last production worker employed is 60 units of output per hour, and production workers are paid 50 CNY per hour. The marginal product of the last supervisor employed is 120 units of output per hour, and supervisors are paid 80 CNY per hour. i. If the firm produced 2,100 bicycles per month before the last production worker was hired, how many bicycles does it produce now? ii. Assume that the firm's isoquants are smooth curves and that labor hours can be varied continuously. Is the firm producing the maximum level of bicycles given its current level of cost? Explain why or why not. If it isn't, explain what it should do to increase output.13. A firm's only variable factor is labour and it produces a single product, X. It also has fixed costs. The short-run production function is; X-0.1L+ 6L? + 12L. Where X is the output in tons, and L is the number of persons employed. a. How many persons are employed if the average physical product of labour is maximized? b. How many persons are employed if the marginal physical product of labour is maximized? c. What is the quantity of X when average variable cost is minimized?Suppose that the marginal product of labor for a local bakery is 84 units per day and the price of labor is $4 per day. Instructions: Enter your answers as a whole number. a. What does the least-cost rule say that the ratio of the marginal product of capital to the price of capital should be? b. Now suppose that the marginal product of labor is 84 units per day, the price of labor is $4 per day, and the price of capital is $3 per day. What does the least-cost rule say that the marginal product of capital should be?
- When a firm hired it tenth worker, its factory output increase by four units per month. Would you expect the firm's output to increase by eight more units per month if the firm hired two more workers? ExplainSuppose you are considering hiring another worker. Also assume that you are at a firm that is operating at a point where the marginal product of labor is 5 and the price of each unit of labor is $2, and the marginal product of capital is 20 and the price of each unit of capital is $10. Should you hire another worker? If you hire another worker, what will happen to the marginal product of labor and why?I need help with econ multiple hw questions asap! 48) Let L represent the number of workers hired by a firm and let Q represent that firm’s quantity of output. Assume two points on the firm’s production function are (L = 12, Q = 122) and (L = 13, Q = 132). What is the marginal product of the 13th worker? A. 122 units of output B. 10 units of output C. 8 units of output D. 130 units of output 47)