How much capital and labor should be used to produce 400

Assignment Help Microeconomics
Reference no: EM133439711

Questions: A firm's production is represented by the following function: Q = L1/4 K 3/4 . The rental rate of capital (r) is $40 and the wage rate (w) is $12.

a. For a given level of output, what should be the ratio of capital to labor in order to minimize costs?

b. How much capital and labor should be used to produce 400 units of output? What is the total cost?

c. What is the short run total cost if output is decreased to 300 units?

d. How would the capital labor choice and total cost change in the long run? e. Would the firm prefer to relocate if input prices are r = 60 and w = 8 at an alternative location assuming relocation is costless?

 

Reference no: EM133439711

Questions Cloud

How is the saying when in rome, do as the romans do : How is the saying "when in Rome, do as the Romans do" applicable to the study of ethics? Should one modify his or her core values to adapt to another culture
What would be opportunity cost of john going to university : What would be the opportunity cost of John going to university? Please include your calculations.
Explain how mandatory seat belt laws may reduce the negative : explain how mandatory seat belt laws may reduce the negative externalities of risk behavior. Please use the information you obtain from Chapter 5
Explain how a strong brand name makes your company : Explain how a strong brand name makes your company relatively more Inelastic and why companies spend so much money to increase the value of their brand.
How much capital and labor should be used to produce 400 : How much capital and labor should be used to produce 400 units of output? What is the total cost? What is the short run total cost if output is decreased
What is the swot analysis for the economic trends : What is the SWOT analysis for the economic trends in the case study and What is the SWOT analysis for the socio-cultural trends/factors in the case study
What does this say about the responsiveness of people : What does this say about the responsiveness of people to the price of illegal parking? Is demand for illegal parking price elastic or price inelastic?
How did the selling-a-feeling campaign : How did the Selling-a-Feeling campaign of Tim Horton's lead to their success in Canada? Please include references
What have you learned about your personal ethic : How has interdisciplinarity functioned in this course and in your work on your capstone project? Which different academic disciplines-your major

Reviews

Write a Review

Microeconomics Questions & Answers

  Double-entry accounting services begin operations

Double-entry Accounting Services begin operations on July 1. It allows its clients 90 days to pay for services received. On the other hand, the company's suppliers require payment for their goods and services within 30 days. Double-entry prepaid its ..

  What is main principle guiding the alternative tax proposal

Explain why a set of tax prices such as the one proposed in (a)(ii) is unlikely to provide the proper incentives for individuals to reveal their true.

  Calculate price changes for each commodity

Complete the table. Compute the inflation rate from 1995 to 2010. Calculate price changes for each commodity from 1995 to 2010 measured as percentages

  Calculate the value of the government purchases multiplier

Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.6.

  So charges same price in each how many stones will it sell

gliberaces fashion accessories of las vegas produces gem-stone encrusted formal wear for sale in los angeles and san

  Reject the null hypothesis

Given a specified level of significance the absolute value of the critical value will be smaller for a one-tailed test than for a two-tailed test.Suppose that the weight of cereal in a box is normally distributed around a mean of 20, measured in o..

  Select an example of a company that you know practices

In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real compa..

  What are potential risks to the public and to stakeholders

What are potential risks to the public and to stakeholders? Please explain how Saint Leo's core value of integrity is reflected in your answer.

  The total value of liabilities

Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.

  State the transversality conditions

State thes implified version of the problem in which the household chooses tomorrow's capital stock instead of today's investment .2 Given the Setup in 1.1, state the current value Lagrangian. .3 State the household's first-order conditions for cons..

  How much will the firms total revenues revenues from both

you are the manager of a firm that receives revenues of 50000 per year from product x and 90000 per year from product

  What are two advantages of world trade

What proof do you see on a daily basis that we live in a globalized world and How does the world become a smaller place with the improvement in technology

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