Evaluate the amount of investment

Assignment Help Mathematics
Reference no: EM131587692

Question: Application exercise. Assume that an isoquant representing the output (Q) manufactured by a producer when two factors (capital, K, and labor, L) are employed is defined by the implicit production function Q(K,L) = K0.4L0.6 = 500. Also assume that the producer's iso cost line is represented by the equation rK + wL = M, where r = 0.2 denotes interest rate, w = $10 denotes wage rate, and M = $100 000 denotes the amount of investment. Show the equilibrium of this producer (assuming that the equilibrium occurs when the slope of the isoquant is equal to the slope of the isocost line).

Reference no: EM131587692

Questions Cloud

Estimate the true proportion of students : A college believes that 28% of applicants to that school have parents who have remarried.
Describe the project management skill : Explain why you believe it is most important and whether and how it can be learned.
The current year ratios with the prior year ratios : In what way does the Statement of Cash Flows help you to interpret the ratios and financial performance of the company?
Writing a program that evaluates infix expressions : CMSC 350 - writing a program that evaluates infix expressions of unsigned integers using two stacks. The program should consist of three classes
Evaluate the amount of investment : Application exercise. Assume that an isoquant representing the output (Q) manufactured by a producer when two factors (capital, K, and labor, L).
Why stakeholders resist the implementation of change : Why stakeholders resist the implementation of change. What are some of the signs indicating that there is a resistance to change within an organization?
What amount will be recaptured as a cost recovery : What amount will be recaptured as a cost recovery if business usage drops below 50% in the second year
How is dance reflective of the music : explore how dance responded to that particular type of music. How is dance reflective of the music to which it responds
Show the equilibrium of the consumer : Application exercise. Assume that an indifference curve representing the utility (U) obtained by a consumer when two goods (y and x) are consumed is defined.

Reviews

Write a Review

Mathematics Questions & Answers

  Let u be a harmonic function on the unit ball b1

Let u be a harmonic function on the unit ball B1 with ||u||∞ = supz∈B1|u (z)|

  Detailed description of the option chosen

Using a property valued at $998,000 Financing option: 15 year ARM *provide a detailed description of the option chosen Determine a down payment

  Dispensing the wrong medication to patient

Shewhart's Theory for Statistical Process Control (SPC) requires a change in thinking from error detection to error prevention and has a number of benefits.

  Kate scored in the 10th percentile rank on an exam

Kate scored in the 10th percentile rank on an exam

  Find the formula for the number of kg of salt in the tank

A salt-water mixture is being added to a tank at 4 L/min. The tank mixture is being drained at 4 L/min. Find the formula for x(t), the number of kg of salt in the tank at time t.

  Multiple choice questions on regression

Multiple choice questions on regression.

  Describe different variations of the tower of hanoi puzzle

Describe different variations of the Tower of Hanoi puzzle, including those with more than three pegs.

  Computation involving a change in blood ph

Calculation involving a change in blood pH. Although the pH of human blood is normally between pH 7.3-7.5, certain situations can take place which bring about "acidosis." Acidosis is defined as an abnormal lowering in the blood pH

  What is the width of the path

a pool measuring 10 meters by 16 meters is surrounded by a path of uniform width. If the are of the pool and path combined is 272 square meters, what is the width of the path?

  Write the system in non-matrix form

Calculate whether or not the given point is a solution to the system and write the system in non-matrix form

  Explain what each means in terms of the sand dune

Using units, explain what each means in terms of the sand dune.

  Important information about statistics probability

Important information about Statistics probability, Packages from packing machine have a mass, which is normally distributed with mean 200g and standard deviation 2g

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd