Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10. If the level of production is currently efficient,the wage rate must bea. $10b. $5c. $20d. $40
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Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10. If the level of production is currently efficient,
the wage rate must be
a. $10
b. $5
c. $20
d. $40
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- Question : Suppose a firm has a production function Q = 10VKL so that 5/K MPL 5/L VK MPK The firm uses 9 units of capital in the short run: K = 9 The wage is $80 and the rental rate of capital is $5 What is the cost of producing 60 units of output? $445 $108 $365 $276Economics Suppose that production for good X is characterized by the following production function, Q = 4K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $12 and the per-unit wage, w, is $20, then the average total cost of using 25 units of capital and 49 units of labor is Multiple Choice $6.25. $9.14.Correct $10.07. incalculable since there is insufficient information to determine the average total costs.A firm employs 100 workers at a wage rate of €10 per hour, and 50 units of capital at a rate of €20 per hour. The firm is currently operating at a point on its isoquant curve. At this point, the marginal product of labour is 30, and the marginal product of capital is 50. Which of the following statements is correct? A. The firm is producing its current output level at the minimum cost. B. The firm could reduce the cost of producing its current output level by employing more capital and less labour. C. The firm could reduce the cost of producing its current output level by employing more labour and less capital. D. The firm could reduce the cost of producing its current output level by employing less capital and less labour. E. Both C and D are true.
- A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3?unit(s)b. If the wage rate is $45 per hour and the rental rate on capital is $25 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $25 per hour but the rental rate on capital remains at $25 per hour? Capital decreases and labor increases. Capital and labor increase. It does not change. Capital increases and labor decreases. Only typed answerA firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3?unit(s)b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour?multiple choice Capital and labor increase. Capital decreases and labor increases. Capital increases and labor decreases. It does not change.A firm produces output according to a production function:Q = F(K,L) = min {6K,2L}.a. How much output is produced when K = 2 and L = 3? unit(s)b. If the wage rate is $30 per hour and the rental rate on capital is $10 per hour, what is the cost-minimizing input mix for producing 6 units of output?Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $10 per hour but the rental rate on capital remains at $10 per hour? (Choose one that is the best answer) Capital decreases and labor increases. It does not change. Capital increases and labor decreases. Capital and labor increase.
- Suppose a firm is producing some output level q1 using a combination of capital and labor for which the RTS (MPL/MPK) at this input combination is 1. Suppose further that the wage rate is $20 and the rental rate on capital is $10. Which of the following statements is correct? A. The firm can reduce its costs of producing q1 by using more labor and less capital B. The firm can reduce its costs of producing q1 by using more capital and less labor C. The firm is currently minimizing the costs of producing q1 D. Whether or not the firm is minimizing the costs of producing q1 is indeterminateA firm produces output according to a production function: Q = F(K,L) = min {4K,8L}. a. How much output is produced when K = 2 and L = 3? 192 Numeric ResponseEdit Unavailable. 192 incorrect.unit(s) b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 8 units of output? Capital: 80 Numeric ResponseEdit Unavailable. 80 incorrect. Labor: 480 Numeric ResponseEdit Unavailable. 480 incorrect. c. How does your answer to part b change if the wage rate decreases to $20 per hour but the rental rate on capital remains at $20 per hour? multiple choice Capital and labor increase. It does not change. Capital increases and labor decreases. Incorrect Capital decreases and labor increases.You run a school in Florida. Fixed monthly cost is $5,755.00 for rent and utilities, $5,797.00 is spent in salaries and $1,680.00 in insurance. Also every student adds up to $103.00 per month in stationary, food etc. You charge $672.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,825.00, salaries to $6,682.00 and insurance to $2,164.00 per month. Variable cost per student will increase up to $171.00 per month. However you can charge $1,143.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places.
- 2/3 - Suppose the firm's production function is Q = K¹/³L2/³, where the MPK 2K-¹/3 and MPL 3K-2/3 31¹/3 If the rental rate of capital R is $35 and the wage rate Wis $70, how many units of labor and capital should the firm use to produce 12 units of output? L = 18; K = 9 L = 12; K= 12 L = 9; K= 18 L = 24; K = 24 =A firm produces output according to a production function: Q = F(K,L) = min {4K,4L). a. How much output is produced when K= 2 and L = 1? unit(s) b. If the wage rate is $60 per hour and the rental rate on capital is $40 per hour, what is the cost-minimizing input mix for producing 8 units of output? Capital: Labor: c. How does your answer to part b change if the wage rate decreases to $40 per hour but the rental rate on capital remains at $40 per hour? O Capital decreases and labor increases. O It does not change. O Capital increases and labor decreases. O Capital and labor increase.You run a school in Florida. Fixed monthly cost is $5,524.00 for rent and utilities, $5,671.00 is spent in salaries and $1,362.00 in insurance. Also every student adds up to $101.00 per month in stationary, food etc. You charge $609.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,214.00, salaries to $6,918.00 and insurance to $2,219.00 per month. Variable cost per student will increase up to $161.00 per month. However you can charge $1,051.00 per student. You want to determine in percent the new charge compared to the previous charge. To calculate this, divide the new charge per student by the previous charge per student, keep in a decimal form and round to 3 decimal points.