Find the input combination that will minimize cost of units

Assignment Help Microeconomics
Reference no: EM131482600

Question: 1. A firm has the production function Q = K0.5L0.5 and buys input K at £12 a unit and input L at £3 a unit and has a budget of £600. Use the Lagrange method to find the input combination that will maximize output, checking that second-order conditions are satisfied by using the bordered Hessian.

2. A firm operates with the production function Q = 25K0.5L0.4 and buys input K at £20 a unit and input L at £8 a unit. Use the Lagrange method to find the input combination that will minimize the cost of producing 400 units of Q, using the bordered Hessian to check that second-order conditions are satisfied.

Reference no: EM131482600

Questions Cloud

Determinants of price elasticity of supply : What are the 5 key determinants of price elasticity of supply. Use examples to explain your answer.
What is the total annual inventory cost for the brakes : Best Bikes produces bicycles and buys brakes from a supplier in Japan. What is the total annual inventory cost for the brakes
Consider a continuous review inventory system : Consider a continuous review inventory system. how many units of safety stock should be held?
Determine what key area you want to include in your paper : Compare concepts of Project Portfolio Management and Management of Multiple Project. You will have to determine what key area you want to include in your paper.
Find the input combination that will minimize cost of units : A firm has the production function Q = K0.5L0.5 and buys input K at £12 a unit and input L at £3 a unit and has a budget of £600. Use the Lagrange method.
How many units of safety stock should be held : Consider a periodic review system, where orders are placed every 14 days. How many units of safety stock should be held?
What was the newspaper elasticity of demand : What was the newspaper's elasticity of demand? Given that elasticity, did it make sense for the newspaper to lower its price?
What is the elasticity of demand : At the profit-maximizing output a certain monopolist's price is exactly twice as high as marginal cost. What is the elasticity of demand
How many units should scary clowns produce in each batch : Scary Clowns, Inc., supplies special makeup cases to a major circus. How many units should Scary Clowns produce in each batch?

Reviews

Write a Review

Microeconomics Questions & Answers

  How can tax laws and rules governing affect entrepreneurs

A Bend in the River, Nobel Prize winner V. S. Naipaul describes an underdeveloped country in which the government's constantly changing tax policies and vague laws regarding ownership of property cause entrepreneurs to become demoralized and unres..

  Explain relationship between income and savings

Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis. B). Will a government policy to redistribute income to achieve less income inequality potentially help or hurt ..

  Discuss specific servant leadership principles you apply

Discuss the specific servant leadership principles you would apply, the methods you would use to apply  principles, and the results you would anticipate seeing as a result of implementing these servant leadership principles.

  Find the amount of economic investment which has resulted

assume that a national restaurant firm called bbq builds 10 new restaurants at a cost of 1 million per restaurant. it

  Prepare the person for the next steps in the process

Good News Letter - your company has just made a new hire. Prepare the person for the next steps in the process. You have just had to fire an employee.

  Unemployment

Topics to elaborate: Economy (Economy stability/Managing economy resources effectively/Unemployment/Good control system):

  A firm has two prodcuts and two customers customer 1 is

a firm has two prodcuts and two customers. customer 1 is willing to pay 9 for product a and 4 for product b. customer

  Aggregate demand for goods and services

The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).

  The us government has gengaged in mass amounts

During the last 7 years the US government has gengaged in mass amounts of fiscal stimulus to get the economy moving. Take either the classical or Keynesian point of view on the stimulus. Support your point of view using principles of Classical or Key..

  What effect will this have on price

Suppose both supply and demand decrease. What effect will this have on price and the government sets a price floor of $30 and agrees to purchase all surplus at $30 per unit

  Consumer buying behavior

Consumer Buying Behavior

  Write the factors that would influence federal reserve in

answer the following in at least 75 words each or more.what are the factors that would influence the federal reserve in

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