What is the firms cost minimizing combination

Reference no: EM13182535

a)A cost minimizing firm's production is given by Q=L^(1/2)K^(1/2). Suppose the desired output is Q=10. Let w=12 and r=4. What is the firms cost minimizing combination of K and L? What is the total cost of producing output?

b) Suppose the firm wishes to increase its output to Q=12. In the short run, the firms K is fixed at the amount found in (a), but L is variable. How much labor will the firm use? What will the total cost be?

Reference no: EM13182535

Questions Cloud

What is the marginal cost of flying an additional mile : What is the Marginal cost of one more passenger on a 1,200 mile flight if there are between 250-300 passengers. If the number of passengers is 300 and the flight is between 1,200 and 2,500 miles, what is the marginal cost of flying an additional mi..

Environmental response-compensation and liability act : Superfund (the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, of 1980, as amended in 1986) gives the government several powerful tools to use when attempting to collect clean-up costs from responsible parties.

What is the short-run equilibrium price : Suppose there are two technologies for producing steel. Under technology A, a firm's short-run total cost function is STCa(q)=1/2q^2+100q+10 with SMCa(q)=q+100, and using technology B it is STCb(q)=2q^2+6 with SMCb(q)= 4..

Oligopolistic industries might expected to adjust the prices : Explain why RELATIVE prices of two goods, both produced in each of two countries, will differ prior to any trade taking place ("autarky"). why profit-seeking will cause each country to specialize - wholly or partially - in producing one of the goo..

What is the firms cost minimizing combination : a)A cost minimizing firm's production is given by Q=L^(1/2)K^(1/2). Suppose the desired output is Q=10. Let w=12 and r=4. What is the firms cost minimizing combination of K and L? What is the total cost of producing output? b) Suppose the firm wis..

Theorists warn against the continued use of deficit theories : Theorists warn against the continued use of deficit theories to connect low social-economic standing to failure in school. They have left a lasting mark on schools. Identify a student from a low socio-economic status,from experience who is not succee..

Construction experience-during the design of a new home : I was reminded of what could happen if during the design of a new home, what could happen if the builder takes hardly any feedback from the new owners about the desired design. While the new homeowners may not have a whole lot of construction experie..

Calculate the integer part of the quotient : Calculate the integer part of the quotient when integer a is divided by integer b. Calculate the integer remainder when integer a is divided by integer b.

Discuss the nature of the interaction-cultural dissonance : Discuss the nature of the interaction that caused you to experience cultural dissonance. Explain how you responded to this dissonance. How did it make you feel?

User Account

All Pages