What is the maximum profit for the firm

Assignment Help Microeconomics
Reference no: EM132137744

Quesyion: Intermediate Microeconomics

Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing marginal product in both k and l. This is not the same thing as decreasing returns to scale. Prove that this production function exhibits decreasing returns to scale. Suppose that the rental rate of capital is $10, the wage rate of labor is $10, and the price of output is $40. What is the profit-maximizing quantity of capital and labor? What is the profit-maximizing quantity of output? What is the maximum profit for this firm?

Reference no: EM132137744

Questions Cloud

Illustrate the problems in the church of his day : How do the issues Luther present for debate illustrate the problems in the Church of his day?
Diverge from the rational choice paradigm : Participate in a discussion by explaining why we diverge from the Rational Choice Paradigm when identifying problems and opportunities
How do the price lines look : Suppose that France and Germany both have 100 units each of capital and labor, and that they share the same CRS technology with which they produce wine.
Companies today are utilizing social media care team : Why do you think more companies today are utilizing a social media care team?
What is the maximum profit for the firm : Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing.
Identify a work of jewish art : Identify a work of Jewish art, and compare and contrast it to a work of Early Christian or Byzantine art.
What is the profit-maximizing quantity of capital and labor : Suppose that a firm's technology is given by the following production function: f(k, l) = 6k^1/6 l^1/6 Prove that this production function exhibits diminishing.
What were the underlying causes of the depression : Why did the Great Depression of the 1930s seem so much worse than any occurring either before or since?
Describe the organization labor union activities : Identify the HR components with Rescare incorporation. Describe the organization’s labor union activities

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the law of diminishing marginal productivity

What is the law of diminishing marginal productivity and How does the law of diminishing marginal productivity affect the cost of productions? Provide an example from your workplace.

  After how many years the price level doubles

If the annual inflation rate remains stable at 3.5 %, what is the aggregate price index after 10 years? (Hint: the initial price level is the price index at the base year).

  Write the labor market equilibrium condition

Write the labor market equilibrium condition for the Specific Factors model. Use it to explain what happens to both real product wages when the price of the labor intensive good rises.

  Explain the impacts of an expansionary fiscal policy

Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.

  How businesses and consumers prefer to carry out transaction

The Chinese government has refused to print currency in denominations higher than the 100-renminbi note, which is the equivalent of about $16. The United States prints $100 bills and all other countries print currency in denominations that are at ..

  Has united states become more or less economically free

has the united states become more or less economically free during the past decade? what impact will this have on the

  What are the fundamental problems with the eu

Despite a recent improvement in EU growth (last year GDP growth was 2.9%) there are concerns over fundamental problems with the EU economy.

  Analyze a representative sampling of school-age children

Observational Activity: Gender Roles and Aggression on TV: Guidelines This activity asks you to analyze a representative sampling of school-age children's TV programs, following the guidelines below.

  Compare the consumer surplus and producer surplus

Compare the consumer surplus, producer surplus, and deadweight loss that arise from average cost pricing with those that arise from profit-maximization pricing.

  Describe a time when you consumed food

Describe a time when you consumed food from a contract-managed food provider and determine what steps could have been taken to make the experience.

  What is operating margin?

A clinic has $1 million in revenues and $950,000 in costs.What is its operating margin and its  return on investment and is it adequate?

  Suppose that the level of frictional unemployment

Suppose that the level of frictional unemployment is 2 percent, the level of structural unemployment is 3 percent, and the level of cyclical unemployment is 3 percent. Using Okun's Law, we can determine that real GDP in this economy is

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