The wage rate (w) is $10 and the rental rate uppose that a firm had a production function given by: q=L -) is $5. alculate the amount of labor the firm would hire when it produces 400 units of output in a cost-minimizing way. Round to the nearest 2 decimal places if necessary.) nswer:

The wage rate (w) is $10 and the rental rate uppose that a firm had a production function given by: q=L -) is $5. alculate the amount of labor the firm would hire when it produces 400 units of output in a cost-minimizing way. Round to the nearest 2 decimal places if necessary.) nswer:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

See similar textbooks

Related questions

Q: ABC Co. manufactures a subcomponent at the rate of 400 per day when required. Its annual demand for…

A: Economic Order Quantity (EOQ) benefits entities that control their inventory competently. It is a…

Q: Back to Assignment Attempts Keep the Highest/3 5. Cartel versus competitive outcome A few rival…

A: Oligopoly which is refers to market circumstances or a kind of market organization in which…

Q: Jenny and Mark are partners and the only employees in a law firm. Their firm specialises in…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Lilly deposits $350 every month into an account that earns 8% annual interest where interest is…

A: To calculate future value at compounded semiannually, we need to use the formula : FV=PV(1+i)n…

Q: ILLUSTRATE THE VARIOUS COST CLASSIFICATIONS. (PLEASE INCLUDE PHOTOS OR TEXT FOR THE EXPLANATION)…

A: In popular usage, cost refers to the monetary worth of goods and services purchased by producers and…

Q: Suppose that the federal government is concerned about obesity in the United States. Congress is…

A: Product taxes are levied on each unit of an item or service produced or transferred.

Q: An economy produces only three types of goods: apples, oranges and bananas, production units and…

A: Nominal GDP is the value of all final goods and services produces in any economy in a given year. So…

Q: Explain the central paradox at the heart of the Solow model, with constant and exogenous…

A: The neoclassical growth approach directs general terms directing to the models for economic growth…

Q: Using a diagram, explain what is meant by income and substitution effect of a price change

A: A change in the price of a good has two effects namely income and substitution effect such that the…

Q: Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at…

A: a time of transitory economic contraction marked by a decrease in commerce and industrial activity,…

Q: Justin's demand for good 1 is given by the formula: x1d(p1,p2,I)=2⋅I/4⋅p1+6⋅p2, Suppose...…

A: Given Demand function of good 1 x1p1,p2, I=2I4p1+6p2 .. (1) Initially p1=$7, p2=$7…

Q: explain segmented bar chart

A: Bar charts: It refers to the chart in which the data is shown with the help of rectangular bars.…

Q: Up Down Up Up Down Down Player 1 Player 2 In the game above, what is/are the EFFICIENT sub-game…

Q: In markets for information, which party generally has more knowledge about the value of the…

A: In the market for information, people gets information about goods and services by sellers and…

Q: Can we print as much money to increase consumer spending and allow the aggregate to shift to the…

A: In an economy, aggregate demand can be increased with the help of monetary policy as well as fiscal…

Q: Suppose a closed economy has gross domestic product (GDP) of $10,000, Taxes of $3,000, Consumption…

A: National savings refer to the sum of private and public savings. When taxes exceed government…

Q: Total Output Per Day Price of Good 10 $ 15 14 14 19 13 23 12 6 27 11 7 31 10 A firm's labor input,…

A: Profit maximisation is the ultimate goal of firms. The firm will hire labor where profit is…

Q: Dali enjoys cool drink (c) and steak (s) for lunch. His monthly lunch budget is R600. His total…

A: "In order to meet their needs, consumers purchase goods and services. The consumer equilibrium is…

Q: 1.10 1.20 - 226 -215 - 106 - 89 -56 -37 -44 -25 - 52 -32 -70 -51 - 93 -76 - 118 - 102 A. quantities.…

A: The prisoner's dilemma is a decision-making paradox in which two people acting in their own…

Q: Supply and Demand In a free market economy, the price of a product is determined by the relationship…

A: The law of supply and demand is a hypothesis that makes sense of the communication between the…

Q: In an hour, Megan can produce 5 fruit smoothies or 15 ice cream sundaes, w Jensen can produce 17…

A: A country is said to have comparative advantage if it can produce the good at lower opportunity…

Q: 7. On January 12th 2010 a devastating earthquake with a magnitude of 7.3 struck Haiti. As a result,…

Q: Fishing Designs has arranged to borrow $14,000 today at 15% interest. The loan is to be repaid with…

A: Present amount P =$14000 Rate of interest =15% End of Year payment at the end of years 1 through 4…

Q: 49. The annual rate of interest on a 3-month Rs. 10,000 bond that sells for Rs. 9,6 A. 12% B. 10% KE…

A: An effective annual rate is the genuine profit from a bank account or any premium paying…

Q: Economics MPL Betsy's Bangles produces and sells woven bracelets. The table shows information about…

A: Answer to the three sub parts of the question is as follows:

Q: If the economy of a country can be summarized to the following events on a given year. Price per…

A: GDP (Gross Domestic Product): It refers to the gross domestic income of the society. The increase…

Q: - Tim has borrowed money from Lisa and proposed to pay back the money in two payments. Tim suggested…

A: Given Option A: $500 in one month and $2500 in 8 months Option B: 1000 in three months and…

Q: using economic concepts , discuss the impact of the following events on the equilibriumprice level…

A: Contractionary monetary policy is used by a central bank in order to slow down the economy, with the…

Q: 1. Ben and Jerry are two partners-in-crime, who have robbed a bank. Ben got caught and is questioned…

A: We have given payoff matrix for Ben and Jerry.

Q: What is the expected profit if Yaster Inc. produces and sells 22,798 thingamabobs? $ Round to the…

A: The total revenue of a firm is the total amount of money it earns from the sale of its goods and…

Q: 1. Ben and Jerry are two partners-in-crime, who have robbed a bank. Ben got caught and is questioned…

A: We have 3×3 game for two players Jerry and Ben where they has to decide which strategy they should…

Q: Calculate the benefit-cost ratio with a 10-year useful life, and a 25% MARR, and determine which of…

Q: Find the average time per unit required to produce the first 35 units, if the slope parameter of the…

A: Given, Number of units(x)= 35 Learning rate = 85% Time to produce first unit =448

Q: People hold $200 million of bank deposits but no currency. Banks have made $180 million dollars of…

A: Bank holds or bank reserves are named either required stores or overabundance saves. The expected…

Q: In macroeconomic analysis, the assumption that potential output (Y*) is changing is a characteristic…

A: Potential GDP refers to the level that maximizes output with utilizing all the given resources and…

Q: Which of the following is NOT a result of a temporary fall in foreign demand on one country's…

A: Here, it is given that the foreign demand for exports of a country falls, it implies that foreign…

Q: A real estate developer bought land for $170 000.00 down and monthly payments of $8 450.00 for 5…

A: Given Down payment = 170,000 Monthly payment = 8450 $ Time = 5 years Interest rate = 8.75 %…

Q: The first Welfare Theorem states that, invariably, a competitive market results in an efficient…

A: The first welfare theorem says that under perfect competition, a system of full markets with…

Q: A. Explain the concepts of the 'Lorenz curve' and 'Gini coefficient'. In answering this question,…

Q: Click to see additional instructions Suppose a firm is considering hiring an additional worker. The…

A: The representation “marginal product” directs to the gain in production output due to a growth in…

Q: 3. The graph below gives the marginal profit P'(x) for a company when it produces x products. P'(x)…

A: Given,

Q: Manufacturing highly standardized products are usually more profitable in high context cultures due…

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: A monopolist is determining the optimal output Q* to produce. Demand Function: P=12-2Q Average…

A: Here, demand function and average cost function of a monopolist is given and one can find the profit…

Q: If a country switches from a flexible exchange rate regime to a fixed exchange rate regime, this…

A: These are two types of exchange rate systems. Fixed exchange rate refers to when a country's…

Q: A firm's long-run total cost curve is TC(Q)= 1000Q - 30Q² + Q³. Derive the expression for the…

A: Average cost refers to total cost per unit of output. Marginal cost refers to change in total cost…

Q: A real estate developer bought land for $170 000.00 down and monthly payments of $8 450.0 for 5…

A: Given Down payment = 170,000 Monthly payment = 8450 $ Time = 5 years Interest rate = 8.75 %…

Q: For output levels of 1, 2, 3, 4, 5 and 6 units, a competitive firm's total costs are $142, $172,…

A: Profit maximize when MC = MR MC is marginal cost and calculated by MC = (TCn - TCn-1)/(Qn - Qn-1)…

Q: MC ATC 11. Refer to the above graphs for a competitive market in the short run. Which of the…

Q: Now consider a small open economy, assuming domestic output is held constant and the country…

A: A small open economy's currency is impacted heavily by capital flows.

Q: The gross domestic product (GDP) is looking at the total production of goods and services that are…

A: Introduction The gross domestic product (GDP) is looking at the total production of goods and…

Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

Question

0.25 0.75
q=LK
The wage rate (w) is $10 and the rental rate
Suppose that a firm had a production function given by:
(r) is $5.
Calculate the amount of labor the firm would hire when it produces 400 units of output in a cost-minimizing way.
(Round to the nearest 2 decimal places if necessary.)
Answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the marginal product and average product of employing 3rd labor- (1) Total Labor Units Product (Employees) (Sandwiches per Hour) 0 1. 2 3 15, 10 5, 12.5 5, 10 (2) 10, 10 0 10 25 30
A farmer uses a certain technology that produces electricity. His production function is given as: q = f (k, l) = 1000k¹⁰/20 – 201³ Where q is the no. of megawatts of electricity his company is producing. Suppose that their electrical generators, k=20, calculate for the following: 1. Marginal product of labor 2. Average product of labor if k=20 3. If k decreases from 20 to 17, calculate the new MP of labor and the average product. Explain intuitively what happens to the MP and the average product.
Firm ABC has estimated that it has the following production function: Q = 1.5LK – 0.3L2 – 0.15K2 Labor (L) has a price of €60 and capital (K) has a price of €75. ABC wants to maximize the production with a total cost of €2025. (a) Determine the quantities of labor and capital the firm should use. (round results to 2 decimal places) (b) What quantity of output will be produced at the optimal combination of factors of production?
in part b, how do we know that is the cost function? where are those variables coming from? thx
When the quantity of a variable input is increased from 3 units to 4 units the total output increases from 70 units to 85 units the marginal product of the variable input is 15 units? True/False
When the quantity of a variable input is increased from 4 to 6 units, the total output increases from 85 units to 105 units. The marginal product of the variable input is 20 units.
Dream Line manufacturing has a fixed scale of plant with the levels of total product given in the table below for different levels of labor. Complete the table by calculating the average product and marginal product. (0.5x8=4 Marks) Quantity of labor (workers) Total product Average product Marginal product 0 0 1 29 2 54 3 77 4 95
Consider a Leontief production function Q = Min (K/2, L/3). Price of K is 3 and price of L is 2. If the firm intends to produce 40 units, the cost minimizing K,L combination will be: a. (30,40) b. (20,30) c. (80,120) d. (120,80)
100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.
A contractor wants to rent a wood chipper from Acme Rental for a day for $140 plus $10 per hour or from Bell Rental for a day for $200 plus $4 per hour Find a cost function in dollars for using each rental firm, (Let x be the number of hours for which the wood chipper is rented.) Acme Cx) - Beli CK) - (a) Find the number of hours for which each cost function will give the same cost. hours (b) If the contractor wants to rent the wood chipper for 13 hours, which rental place will cost less? Bell O Acme O they are the same O cannot be determined Additional Materials WeBook
Production function is Z = 2L+10K where Z represents the amount of output produced, L = labour hired, and K = units of capital hired. The wage rate per unit of labour is $10 and the rental rate per unit of capital is $20. For 200 units what will be the minimum total cost of production?
Suppose that a rock star gives concerts. The production function of the concert is the following: Q(C,A,G) = (C – 10)'/4A/4G/4 where C represents hourly contribution of guitarist Chris; A represents hourly contribution of guitarist Ataman and G represents hourly contribution of guitarist George. a) If Chris has 26 units of hours, is there increasing returns to scale in production of concerts? b) Assume George has fixed amount of hours, G=16, and hourly wage of G is 5. Denote the wage of Chris= r and the hourly wage of Ataman =w. Derive Rock star's demand for inputs-C and A, respectively-as a function of output (Q). c) Assume that George has fixed amount of hours G=16 and hourly wage of G is 5. Additionally, you are given that the wage of C = r=100 and the unit wage of Ataman=w=100. Show that Rock star's short run cost function is given by TC(Q) = 1000 +50Q²-