Derive the long-run cost function of the firm

Assignment Help Business Economics

Reference no: EM13986007

For a firm with two variable inputs, X = (KL)^1/4; where X is the level of output; while K and L are the inputs of capital and labour, respectively. The rental rate per unit of capital is $4, and the wage rate per unit of labour is $64.

A) Derive the long-run cost function of the firm.

B) How much will the firm produce if the price per unit of output is $128?

Reference no: EM13986007

Questions Cloud

Calculate the expected income and variance : This problem uses a utility function of the form U = 1 – exp(-0.002 X Income) where exp(z) means “ez”. The problem analyzes a gamble in which Income = 1,000 with probability 0.4 and Income = 3,000 with probability of 0.6. Calculate the expected incom..

Should you replace your equipment now : You are operating an old machine that is expected to produce a cash inflow of $5,000 in each of the next 3 years before it fails.

How do you know when learning has occurred : Write a paper that answers the following questions: How do you know when learning has occurred? Provide your definition of learning in your response

Research the concept of an open economy : Research the concept of an open economy. Now consider the United States' current economic situation. Share your overall opinion of the subject and if you believe the U.S. economy has benefited or suffered (or both).

Derive the long-run cost function of the firm : For a firm with two variable inputs, X = (KL)1/4; where X is the level of output; while K and L are the inputs of capital and labour, respectively. The rental rate per unit of capital is $4, and the wage rate per unit of labour is $64. Derive the lon..

What is the economic justification for the merger : Find an example of a merger that has been in the news within the past 6 months. What is the economic justification for the merger? Are there any antitrust concerns with the merger? Is there a role for government in regulating this merger?

New machine is producing a particular type of cloth : The director of manufacturing at a clothing factory needs to determine whether a new machine is producing a particular type of cloth with s mean breaking strength of at least 70 pounds. a sample of 36 pieces of clothe shows a sample mean breaking str..

Department of noardstone department store : The shoe department of Noardstone's Department Store has prepared a sales budget for April calling for a sales volume of USD 75,000. The department expects to begin in April with a USD 50,000 inventory and to end the month with an USD 42,500 inven..

Estimate of porpotion of students having access to computed : The dean of business would like to estimate the porprtion of students who have access to a personal computer outside the school. a sample of 150 students revealed that 105 had access to a computer outside school. Compute and explain a90% confidence i..

User Account

All Pages