Firm produces output according to production function

Assignment Help Business Economics

Reference no: EM131169497

A firm produces output according to a production function: Q = F(K,L) = min {9K,3L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $40 per hour, what is the cost-minimizing input mix for producing 9 units of output? Capital: Labor: Specifically, what is the answer for Capital and What is the answer for Labor?

Reference no: EM131169497

Questions Cloud

Identify what you think will be greatest potential roadblock : Based upon your stakeholder analysis, identify what you think will be the greatest potential roadblock you will encounter from stakeholders? Summarize the issue and discuss ideas you have for addressing it in a proactive manner. In your posts to peer..

Discuss specific challenges you encountered in conducting : Create a table that summarizes the research you conducted in order to complete the Topic 2 assignment. In the table, briefly describe each type of research completed and indicate whether it was qualitative or quantitative research. discuss specific c..

Summarizes research you conducted in order to complete : Create a table that summarizes the research you conducted in order to complete the Topic 2 assignment. In the table, briefly describe each type of research completed and indicate whether it was qualitative or quantitative research. In your post, disc..

Enrodes can produce electricity at constant marginal cost : Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 5 million households is Qd = 1,000 - 2P, and Enrodes can produce electricity at a constant marginal cost of $5 per megawatt hour. Consumer..

Firm produces output according to production function : A firm produces output according to a production function: Q = F(K,L) = min {9K,3L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $40 per hour, what is the cost-minimizing ..

Firms have problems with free riders : When goods provided by individuals or firms have problems with "free riders." the?

Constant rate does the owner believe that profits will grow : You’ve recently learned that the company where you work is being sold for $275,000. The company’s income statement indicates current profits of $10,000, which have yet to be paid out as dividends. Assuming the company will remain a “going concern” in..

The cross-price elasticity between ketchup and hamburgers : If the cross-price elasticity between ketchup and hamburgers is −1.5, a 2 percent decrease in the price of ketchup will lead to a:

What is the amount of interest paid in the first payment : Sam borrowed $10,000 with a promise to repay the loan in 6 years with a uniform monthly payment and a single payment of $1,000 at the end of six years at a nominal interest rate of 12% per year. What is the amount of each payment? What is the amount ..

User Account

All Pages