Reference no: EM131806331
Question: Suppose the firm's production function is X = 10k2 L6 . The price for the factors of production are Pk = 10 and PL = 20
1. a. Suppose that initially the firm employed 20 units of K and 30 units of L. What was the output of the firm and what was its cost of production in the immediate runs?
2. a. Suppose the firm increases its number of units of K from 20 to 23, leaving L unchanged. How would this change the marginal cost (MC) of the firm?
b. What would have happened to the MC, if the firm changes its number of units of L from 30 to 34 leaving K unchanged?
c. What would the effect on the MC if the firm increases its inputs to K = 22 and L = 33?
3. a. What kind of economics to scale does this firm exhibit?
b. Suppose the firm double its production what can you say on its new production? Should the firm decentralize or centralize its operations?
c. If the values of the parameters are changed, would you change your answer to b? Be specific and explain properly to gain credit.
4. If the marginal revenue (MR) of x is $20 per unit of X, How many units of K should be employed,
if L = 30 is unchanged.
5. Suppose that the demand function for is given as x = BPx-1/2 and the optimal units of the inputs are K = 20, and L = 30. What is the optimal price Px of the firm's output?
|
Magazine offers a lifetime subscription
: A popular magazine offers a lifetime subscription for $200. Such a subscription may be given as a gift to an infant at birth
|
|
Determine the interest rate
: (a) Set up the cash flows. (b) Determine the interest rate (nominal and effective) for the lease.
|
|
Rate of return for buying the annual permit
: The annual parking permit costs $100 due August 15th, and the semester permits are $65 due August 15th and January 15th.
|
|
What are their total tax savings if they can transfer
: What are their total tax savings if they can transfer $2400 of taxable income to each of the children
|
|
What kind of economics to scale does the firm exhibit
: Suppose the firm's production function is X = 10k2 L6 . The price for the factors of production are Pk = 10 and PL = 20
|
|
Company manufactures hair dryers
: A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 830 per day.
|
|
Incremental cost of the annual permit
: Using the dates and costs for your university, find the rate of return for the incremental cost of the annual permit.
|
|
Prepare a one-page single-spaced abstract of the article
: After reading the article, you should prepare a one-page single-spaced abstract of the article and provide the abstract, not the entire article, to professor.
|
|
Discuss why would edwards be willing to pay
: Why would Edwards be willing to pay $1,500,000 and assume $500,000 of Freidman's debts when the assets were only worth $1,400,000
|