QUESTION 1 For the production function Q = KO.2L0.1 and the budget 133 = 7K + 5L find the optimal employment of L. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 = 1.1).
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- The output at a certain factory is Q(x, y) = 6x² + 3e*/36 VJ + 3y. where x and y denote, respectively, the number of hours of skilled and unskilled labor used. The current labor force consists of 35 hours of skilled labor and 49 hours of unskilled labor. Find the marginal rate of technical substitution. O Give your answer as a decimal accurate within +1% of the exact answer.6. A company uses two inputs, unskilled labour (L) and capital (K), to produce itsproduct. The wage rate for a unit of labour is €5, while a unit of capital cost €20.a) Determine the equation and plot the isocost line for the company's expenditures on itsinputs of €1,000. Label the intercepts of the isocost with both axes. Draw a typical isoquantfor an output level Q0 and indicate the optimal input levels of L and K. (Do not forget tolabel the axes).b) Suppose the government introduces a minimum wage for unskilled labour of €6 per unit.Show graphically and explain shortly how much it would cost the firm in the short run,with capital input fixed at K, to keep its output constant at Q0.c) Show graphically and comment shortly on the optimal factor mix that the firm would useto produce Q0 in the long run at the specified minimum wage of €6 per unitAssume that quantities do not need to be integers. That is, it is feasible for Andreas to knit 37.5 mittens. You have two employees, Meb and Des, each of whom works for 10 hours a day. Meb can knit 5.2 mittens in an hour. Meb can knit 2 scarves in an hour. Des can knit 1.2 mittens in an hour. Des can knit 1 scarf in an hour. If they are efficiently knitting 18 scarves a day, what is the opportunity cost, in terms of mittens per day, of producing an extra scarf each day. Enter a number (and only a number, no units) rounded to two decimal places. If your answer is 1.275, enter 1.28. 2.6
- Which of the following diagrams shows fixed proportion isoquants? A X1 X1 X2 X1 D X2 X1 O A OB OCSuppose that production function of certain devices is determined by: q = k * L - 0.8 k2 - 0.2 L2 Where q represents annual quantity of devices produced, k represents annual quantity of capital factor, and L represents annual quantity of labor factor. (a) Suppose k = 10; draw a graph with average and total labor productivity. What is level of labor (L) factor at which average productivity reaches a maximum? How many devices are produced at that point? (b) Assuming again that k = 10, plot Marginal Product (MP) curve. At what level do we have that labor (L) factor is MP = 0? (c) Suppose capital (k) factor were to increase to k = 20. How would your previous answers change?The following data give the hourly wage rates (Rands) for a sample of 20 workers selected from a largecompany.12.50 9.45 13.85 7.25 8.70 14.60 11.75 14.50 10.80 12.457.50 15.90 9.75 11.50 13.30 6.25 15.50 12.80 5.35 9.50 (vi) Draw an OGIVE curve corresponding to the data and use it to estimate the median.
- Please provide the excel formula because I am not understanding what I'm doing wrong with the gradient and percentages. Thank you.A company produces children's toys. The manager noticed the connection between the number of employed workers and the quantity of toys produced per month, which are presented in the table of following: a) In what period is this firm operating? Why? b) What is the average product when 5 workers are employed? c) What is the marginal product when 7 workers are employed? What does this value mean? d) Does the law of declining marginal income apply? If yes to which worker? e) In this production function do we have total declining revenues? If so, which worker happens? f) Graph the curves of total product (TP), marginal product (MP) and product average (AP).In a certain factory the production is Q = 120K1/2L1/3 units, where K represents the capital investment measured in units of $ 1,000 and L the size of the labor force measured in worker-hours. Currently, the capital investment is $ 250,000 and 400 worker-hours are employed. Apply the total differential of Q to estimate the resulting change in output, if the capital investment increases by $ 500 and labor increases by 2 hours-worker.