Reference no: EM13795996
1. A firm's production function is qi = 10 Li^.3 Ki^.5.
a. Prove that the firm has decreasing returns to scale.
b. Theresa received an order for 5000 units. Find the optimal K/L ratio, as a function of w/r. Next, assuming w = $20 and r = .10, solve for Ki*, Li*, and qi*. Then draw a graph, showing the isoquant and isocost line associated with your answer.
c. If this firm had a budget of $80,000 to spend on inputs, how many units of output could be made? Continue to assume w = $20, and r = .10 as in part b. Again, draw a graph showing the relevant isocost line and isoquant at your solution point.
d. If the price of the output was $4, find the profit-maximizing level of Li, Ki, and qi
|
Write a explanation of the cartesian method
: Write a explanation of the Cartesian Method and identify some of the potential problems with, and appeal of, this approach. Try to illustrate key aspects of this method with your own examples.
|
|
The difference between tax avoidance and tax evasion
: What is the difference between tax avoidance and tax evasion?
|
|
Benefits of outsourcing to low labor cost countries
: Was Balagny Clothing Company better off keeping its operations within the US? Why more manufacturing companies are beginning to relocate to the US after enjoying the benefits of outsourcing to low labor cost countries? What are the determinants of pr..
|
|
Approach in international marketing and advertising
: What is the programmed management approach in international marketing and advertising? How are Kraft Heinz, P&G, Nestle and Starbucks are handing this?
|
|
Firms production function
: Prove that the firm has decreasing returns to scale. Theresa received an order for 5000 units. Find the optimal K/L ratio, as a function of w/r. Next, assuming w = $20 and r = .10, solve for Ki*, Li*, and qi*. Then draw a graph, showing the isoquant ..
|
|
Define the various aspects of decision making
: How can you systematically detect bias in your own decisions and biases in others. What is the five-step process that will assist you with adjusting the decisions of others. Describe.
|
|
Consumers surplus and the producer surplus earned
: Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
|
|
Write a paper about the chris arnolds given article
: Write a paper about the article "Economists Say Millennials Should Consider Careers In Trades" by Chris Arnold.
|
|
Problems based on source of the pollutants.
: What steps are in place to eliminate the pollutant or to mitigate harm from the pollutant?
|