Cost minimizing bundle and units of output

Assignment Help Business Economics

Reference no: EM131004713

Suppose that the following is true: When w=v=$10, the cost minimizing bundle for q=100 units of output is k=l=20. When w=$8 and v=$10, the cost minimizing bundle for q=110 units of output is l=28 and k=19. Indicate whether the following statement is true, false, or uncertain. Explain your answer.

a) When w=v=$5, average cost for q=100 is $2.

Reference no: EM131004713

Questions Cloud

Explain why this may be an inefficient system : Ten people have dinner together at an expensive restaurant and agree that the total bill will be divided equally among them. What is the additional cost to any one of them of ordering an appetizer that costs $20? Explain why this may be an inefficien..

Respect to the theory of consumer demand : Manages regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. Suppose you have the following information. Current product price equal $24.00. Explain the basic difference in..

Statements are potentially valid arguments : You have gone through two years of medical school but are suddenly wondering whether you wouldn't be happier as a musician. Indicate if the following statements are potentially valid arguments or not? Explain.

State which component of aggregate demand : In each of the situations described, state which component of aggregate demand (C, I, G, or NX) of the United States is affected and whether aggregate demand will increase or decrease as a result. The recent hike in the federal-funds rate target incr..

Cost minimizing bundle and units of output : Suppose that the following is true: When w=v=$10, the cost minimizing bundle for q=100 units of output is k=l=20. When w=$8 and v=$10, the cost minimizing bundle for q=110 units of output is l=28 and k=19. Indicate whether the following statement is ..

Calculate the effect on the equilibrium interest rate : Indicate whether each of the following statements is possibly true or certainly false. The cost minimizing bundle for y = 50 is l=10 and k=40 if labor and capital cost the same, and is l=12 and k=37 when labor costs $20 and capital costs $15. Calcul..

The cost-minimizing bundle : Indicate whether each of the following statements is possibly true or certainly false. The cost-minimizing bundle for y = 50 is l = 10 and K = 40 if labor and capital cost the same, and is l = 12 and K = 37 when labor costs $20 and capital costs $15.

Providing some form of public benefit is primary motivation : Providing some form of public benefit is the primary motivation for purchasing by members of the ________.

Eliminating poverty will pay for itself in reduced crime rat : According to the Green Party of Canada: “Eliminating poverty will pay for itself in reduced crime rates. Failure to eliminate poverty will cost our society far more than an effective program to make poverty history in Canada.”

User Account

All Pages