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

Molding process, why compression molding process is impractable for thermop...

why compression molding process is impractable for thermoplastics?

Thermodynamics, why there is heat is not completely converted into work in ...

why there is heat is not completely converted into work in ideal case?

Calculate the cutting speed in drilling operation, Calculate the Cutting Sp...

Calculate the Cutting Speed in Drilling Operation Calculate the cutting speed if a drill of 0.04 m dia is operated at a speed of 250 rpm. Solution D = 0.04 m N = 25

Explain caustic stress corrosion cracking, Q. Explain caustic Stress Corros...

Q. Explain caustic Stress Corrosion Cracking? Dilution of the caustic prior to injection into a relatively hot stream will minimize the potential of caustic Stress Corrosion Cr

Equipment for resistance welding, EQUIPMENT FOR RESISTANCE WELDING The ...

EQUIPMENT FOR RESISTANCE WELDING The equipment for resistance welding is different from that for arc welding for the following reasons: Resistance welding machines are complica

Refrigeration, In a steam jet refrigeration system, the ejector extracts 3....

In a steam jet refrigeration system, the ejector extracts 3.3 m3/s of saturated water vapor at a temperature of 7.2 °C from the flash chamber. The return water from the cooling coi

What is, what is soundness of casting.

what is soundness of casting.

State Initial graphics exchange specifications, Initial Graphics Exchange S...

Initial Graphics Exchange Specifications (IGES) The basic concept of IGES is concerned with the exchange of product description data from one CAD system to another one. The CAD

Determine reactions at supports of loaded beam, Determine reactions at supp...

Determine reactions at supports of loaded beam: Determine reactions at supports A and B of loaded beam as shown in the figure given below.     Sol.: First co

Determine the deflection , Obtain the equations of the elastic curve and us...

Obtain the equations of the elastic curve and use them to determine the deflection and rotation at point B in terms of E, I, F and L.

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