2. Assume the technology is described by y =(x,x2)i and that prices of inputs are wi and wzrespectively. (a) Find the conditional factor demands for inputs x, and x2
Q: a. Demonstrate that the production functions satisfy the conditions for monotonically increasing,…
A: a. Constant returns to scale refers to when a growth in total output is proportional to an increase…
Q: A purely competitive firm has a single variable input L (labor), with the wage rate W0 per period.…
A: Part (a) The production function is a technical relationship between the amount of inputs that a…
Q: ree competition company produces a good Y with the following product functions Y=1/2*L1/2, where L…
A: a) If the wage is W, then cost L units of labour is WL. To obtain the cost function, we just need…
Q: 7. On short notice, Walter creates blue ice according to the following production function:…
A: * ANSWER :- (7)
Q: Consider a firm that utilizes Labor (L) and Capital (K) to produce a product Q, and the technology…
A: Iso-quant curve show the different possible combinations of input that produces the same level of…
Q: 6. We have the production function, Q= fl K,L). Factor prices are r and w respectively and the…
A: Here, we have Production function, Q=f(K,L) Rental rate of a unit of capital is given by r which is…
Q: Suppose we have a produ ction function for wheat Q = KL - 0.8K2 -0.212 A. Given K = 10 Units,…
A: Answer: Given, Production function: Q=KL-0.8K2-0.2L2 (A). Substitute K=10 in the production…
Q: For a producer willing to produce 100 units of output at the minimum cost, what is the optimal…
A: Cost of production is minimized at the level where slope of isoquant is equal to slope of ratio of…
Q: 1. Suppose the production function of a firm is given as: Q = SL + 10L2 – 213 a. Find the number of…
A: Given Production function: Q=5L+10L2-2L3 .......... (1)
Q: Inputs of a MP Inputs of b 25 40 20 36 3. 15 32 4. 10 24 20 16 7. The table gives marginal product…
A: We have input prices pa =5 ansd pb = 8.
Q: Consider the following production function x= FU.k) = A e where xis the outout e is the labour…
A: We have given Production function: x=Albkb .... (1) Where l denotes labor, k denotes…
Q: b) Consider the following CES production function: Q = A[al-' + (1 – a)K-7 where Q is output and…
A: The production function is a mathematical equation that determines the greatest output a company may…
Q: A firm produces a good using two inputs, capital (K) and labour (L). For every unit of output being…
A: Total Cost=$1000 Rental capital= $20 Hourly wage= $10
Q: When Average vaiable cost (AVC) = 600 and Average product (AP)= 0.14. Then find the wage rate W.
A: Given data: AVC=600AP=0.14
Q: Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that…
A: Marginal Revenue refers to the revenue that a firm or seller receives in the sale of an additional…
Q: Derive formulae for the marginal products of the three inputs in the produc- tion function Q =…
A: Marginal product of an input is the additional output produced by employing an additional unit of…
Q: complements in a one- EXERCISE 11.6 Suppose capital and to-one ratio. That is, suppose that Q = min…
A: Rental rate is the amount that would be paid for rental of similar real property in the same…
Q: 2/3 1/3 Q1. Consider the production function Q = 9LKA a. What is the level of output when L 1000 and…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Assume ako that the estimated supply function for beans is given as: e; = 19+ 20P, – 10W + 6T – 32P,…
A: According to the guidelines we can only provide solutions for one question with 3 sub parts in a…
Q: What are the conditional demands for input C and E?
A: A production function shows the relationship between the inputs in the production and the output…
Q: 1 The demand for an input is: a. the VMP of the input. b. derived from input owner's…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: a rational producer can produce after the point where Marginal product MP is less than zero, if the…
A: Even if the price of input is zero, a rational producer will never produce in the region where…
Q: function A For the following Production Funchons. 0<2, B<1 -e B) Q = A[SL² + (1-5)k °7 ² A) (2= AK ²…
A: To prove the above given conditions, we are going to use Euler's theorem applied to Cobb-Douglas…
Q: A profit-maximizing firm will comtinue to hire additional units of labor until the amagninal…
A: Answer: D (equal to the wage or marginal factor cost) Explanation: A profit-maximizing firm will…
Q: 1. Find the cost function and the conditional demands for inputs associated to the CES production…
A: Given:- Production Function; f(x1,x2)=A(αx1ρ+(1-α)x2p)β/ρ Cobb Douglas production function;…
Q: 2 Suppose that production for good X is characterized by the following production function, O= K005…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 1. The demand for an input is: a. the VMP of the input. b. derived from input owner's…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Ab isocost linejdentifies a. The least costly combination-of-inputsmeeded to-produce a given level…
A: The Isocost line show the different combination of inputs that cost the same amount with prevalent…
Q: What is the marginal physical productivity (MPP) of the inputs given the function Q=18x21+2x1x2+2x22…
A: Input function is differentiated to get the marginal physical productivity of x1 and X2.
Q: The production function for water bottling in Lusaka is given by y=min (2K,4L). The firm has hired…
A: There are many types of production functions i.e. perfect substitutes, Cobb-Douglas, perfect…
Q: 6. We have the production function, Q= f( K,L). Factor prices are r and w respectively and the…
A: Here, we have Production function, Q=f(K,L) Rental rate of a unit of capital is given by r which is…
Q: (a) The production function of Shell & John Co. is given as: Z= 4X² + 4XY + 6Y2; where, Z = output;…
A: We are going to find the value for MRTS to answer this question.
Q: [alº + (1 – a)k°jô a. Please show that MPx= (1 – a)()P-1 and MP= a(-)P-1 Suppose we are given a…
A: A production function expresses the relationship between the inputs and the output produced with the…
Q: 2. A firm faces the production function 1 Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy…
A: Price of labor = 2 and price of capital =5 total cost C=150
Q: Find the conditional factor demand for factor æ2 if the firm wants to produce y = 25.1 units of…
A: Given information Production function: y=f(x1,x2)=min(0.5x1,0.3x2) We have to find the conditional…
Q: suppose that input prices are (w, r) >> 0, where w is the wage rate (price of a unit of labor) and r…
A:
Q: a) Derive the goods market demand curve in terms of the output (Y) and the…
A: Consider a model of goods market that is characterized by the following equations:- Aggregate…
Q: A firm uses a single input to produce a commodity according to its short-run production function…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 1. If the Örmís production function isF(K;L) =K(L+ 2), derive the short-run total cost…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: Given the following data on input and output levels. Suppose the output price is $2 and input price…
A: Average Value Product refers to the worth of the average product in the market. This shows the value…
Q: 1) For the following functions of production, find the functions of conditional input demand and the…
A: Since you have posted multiple subparts of a question so as per guidelines we can solve only 3…
Q: a) Use Shephard's lemma to compute the contingent demand functions for inputs k and l. b) Use your…
A: We have given that : q = 2√k'l √l = q/2√k' l = q2 / 4 k' Capital is fixed in the short run and…
Q: Suppose Firm A has a budget of P1.5 million pesos in outsourcing inputs, labor and machines, that…
A: A budget in economics is described as the estimation of expenses and revenues over a particular…
Q: in competitive labor market. O. The company's marginal expense of labor is equal to the company's…
A: Answer: In a competitive labor market, the suppliers and buyers both will be price takers. It means…
Q: 0.5 Given the production function q = f(x1,x2) = 1.32 × xx2, input price vector (w1, w2) and output…
A: We are going to solve for optimal bundle and profit maximization to answer this question.
Q: The short run market demand and supply for kente cloth are expressed as follows: demand: P=40-0.25Q…
A: 1. The market is in equilibrium when demand is equal to supply. Therefore:…
Step by step
Solved in 3 steps with 2 images
- You decide to sell pairs of running shoes. Assume that the quantity demanded is alinear function of the price. It is known that if you charge $40 per pair of shoes, thenyou will be able to sell 400 pairs of shoes in a month. If you charge $60 per pair ofrunning shos, then you can sell 300 pairs of shoes in a month. It is also known thatyour monthly fixed cost is $100 and pairs of shoes cost $20 per shoe to produce. Findwhat price you should charge for a pair of shoes in order to maximize profit in amonthFind the elasticity of scale and the elasticity of substitution for the CES production function (x1; x2) = (x1rho + x2tho 1/P, where 0 * p > !!!Producers of a certain brand of refrigerator will make 1600 refrigerators available when the unit price is $320. Ata unit price of $370, 5600 refrigerators will be marketed. Find the equation relating the unit price p of a refrigerator to the quantity supplied x if the equation is known to be linear How many refrigerators will be marketed when the unit price is s4207 refrigerators What is the lowest price at which a refrigerator will be marketed?
- I A consumer's Marshallian demand for y is given by gy(Pa, Py, I) = —— 3. The price of Py = good y is py 4 and the consumer's income is I = 15. What is ey,py, the consumer's own price elasticity of demand for y? (a) −15 (b) -5 (c) -5/12 (d) −1 (e) -15/16The quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $140. The quantity demanded each month is 1000 when the unit price is $110. The suppliers will market 750 espresso makers when the unit price is $76 or higher. At a unit price of $96, they are willing to market 2250 units. Both the supply and demand equations are known to be linear. (a) Find the demand equation. P = (b) Find the supply equation. p= (c) Find the equilibrium quantity and the equilibrium price. units $What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = 1 (b) o = -1 (c) o = 1 (d) σ = 3 2
- State the processes performed when demand is predicted to be greater than supply.Input either "increase" or "decrease" where relevant: An increase in the prices of inputs will cause the equilibrium price to ....... and the equilibrium quantity to .....4) Find the elasticity of substitution (o) for the following production functions. a.) q = 10 K0.²L0.8 b.) q = 2 [0.2K-2 + 0.8L¬2 ]-0.5
- It has been mentioned that there should be a match of supply and demand in a company that produces spare parts.Department A can produce parts at a rate of 80/day.Department B uses those parts at the rate of 10/day.Each day unused parts are added to inventory.At what rate does inventory of unused parts buid up?I. Given the production function Q = AK“LF, find the partial derivatives with respect to K and L and give their economic interpretation. (10) Given the demand for beef Qy = 4850 – 5Pp + 1.5 Pp + 0.1 Y, where Y = 10 000 Py = 100, and the price for pork P, = 100. - a) Find the income elasticity of demand for beef? b) Find the cross price elasticity of demand for beef? c) Estimate the A% in demand for beef resulting from a 10% increase in the price for pork?(i) Given the demand functions and the total cost function two goods: X and Y Px 164- &r Py = 81-2y TC = 800+ 4x +y+2xy %3D where x and y are the number of units of goods X and Y respectively Determine the values of x and y for which profit is a maximum. What is the maximum profit? (ii) A production requirement is that 80x + 20y = 640. Find the maximum profit subject of this constraint. Paragraph BIEE D.