Positive amount of capital, Mechanical Engineering

Assignment Help:

A paint manufacturing company has a manufacter function Q = K+ √L. For this manufacter function MPK = 1 and MPL = 1=(2√L). The rm faces a price of labor w that equivalent $1 per unit and a price of capital services r that equivalent $50 per unit.

a. Show that the rm's cost-minimizing input combination to produce Q = 10 involves no use of capital. (Hint: this is a corner solution.)

b. What must the price of capital down to in order for the rm to use a positive amount of capital, keeping Q at 10 and w at 1?

c. What must Q enhance to for the rm to use a positive amount of capital, keeping w at 1 and r at 50


Related Discussions:- Positive amount of capital

Belts, laws of belts ?

laws of belts ?

Show produced water de-oiling unit, Q. Explain about water De-Oiling proces...

Q. Explain about water De-Oiling process? The De-Oiling process consists of three major components: The Surge and Skim Tank which reduces PW oil content to 100 ppm I

Evolution of specific volume of wet saturated steam, Evolution of Specific ...

Evolution of Specific volume of wet saturated steam -thermodynamics : Specific volume of wet saturated steam (V we t ) It is volume occupied by unit mass of wet satu

Wire melting characteristics, WIRE MELTING CHARACTERISTICS A non linear r...

WIRE MELTING CHARACTERISTICS A non linear relationship exists between the rate at which the wire is fed into the arc and the current required to burn it off to maintain a constan

Helix angle, what is helix angle and how to determine it?

what is helix angle and how to determine it?

Describe the basic concept of descriptive interface, Describe the basic con...

Describe the basic concept of descriptive interface Descriptive interfaces are the window to other CAD systems, to the master databases or to the manufacturing activities. The

Steps for decarbonise the engine , The following steps are taken to decarbo...

The following steps are taken to decarbonise the engine : Remove the exhaust muffler. Disconnect the spark plug. Remove the intake pipe bolt. Loosen the bolt de

Thermodynamics, how to prove that heat and work is path function?

how to prove that heat and work is path function?

The classical job shop scheduling problem (jsp), The Classical Job Shop Sch...

The Classical Job Shop Scheduling Problem (Jsp) A  job  shop  scheduling  problem  occupies  the  determination  of  beginning  time  for  all operations in a finite and specif

Write Your Message!

Captcha
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