Suppose the production function for pasta

Assignment Help Business Economics

Reference no: EM13840162

Suppose the production function for pasta is Q = 4kl

(a) What is the long-run optimal input combination when Q = 16 , r = 4 , and w = 36 ?

(b) What is the long-run total cost function when r = 4 and w = 36 ?

Reference no: EM13840162

Questions Cloud

Firm reinvest in advertising to maximize profits : A monopolist estimated that the own-price elasticity of demand for its product is -4.5 and its advertising elasticity of demand is 1.5. Assuming these elasticities are constant, what fraction of the firm's revenues should the firm "reinvest" in adver..

Patent on tissue plasminogen activator : Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..

What toll needs to be charged to break even : A 100 KM tollway costs $5M per km to build. The bonds are for 20 years and pay 10 percent per year [(A/P, 10%,20) = 0.1175]. If annual maintenance costs are $1000 per km, and 20000 vehicles use the tollaway every day, what toll needs to be charged to..

The equilibrium quantity of the security : Suppose the quantity demanded for a security is BD = 150 - 0.1b, and the quantity supplied of the security is BS = 50 + 0.1b, where b is the price of the security in dollars. Suppose that the supply curve shifts to BS = 75 + 0.1b. The equilibrium qua..

Suppose the production function for pasta : Suppose the production function for pasta is Q = 4kl. Does this cost function have increasing or decreasing returns to scale?

Annual net revenues-what is annual amount port authorities : The Port Authorities of New York and New Jersey estimate that the annual net revenues for the George Washington Bridge (GWB) will total $13M by the end of this year (t=1). What is the annual amount the Port Authorities should expect to spend for a fi..

What is the weekly marginal product of practical nurse : The consultants of Allcare Family Clinic (AFC) have determined that if the clinic hires two more practical nurses, without any other changes in its operation, it can increase the number of patients it treats during a week from 200 to 220. The weekly ..

Advised to pay for anyone to get a vaccination : Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.

What is their short run optimal input combination : Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. Suppose Slurpin..

User Account

All Pages