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

Two wheeler, how to adjust the motorcycle clutch play

how to adjust the motorcycle clutch play

Models and their classifications, explain classifications of models based o...

explain classifications of models based on dimensionality,time-reference,degree of generality and degree of closure

Slipping of belt, the effect of slip of belt on the pulleys on the velocity...

the effect of slip of belt on the pulleys on the velocity ratio of belt drive?

Derive a regression forecasting equation, Derive a regression forecasting e...

Derive a regression forecasting equation: The general manager of a company producing road rollers is convinced that the demand for road rollers is associated to the number of

Heat pump - thermodynamics, Heat Pump - thermodynamics: Heat Pump: H...

Heat Pump - thermodynamics: Heat Pump: Heat pump is reversed heat engine that removes heat from a body at low temperature and transfer heat to the body at higher temperature

Flux cored arc welding (fcaw), Flux Cored Arc Welding (FCAW) This is a ...

Flux Cored Arc Welding (FCAW) This is a variation of GMAW where solid wire is replaced by flux cored wire. The equipments and accessories are the same. Generally, flux cored wi

What is squeeze time, Q. What is Squeeze time? It is the time between t...

Q. What is Squeeze time? It is the time between the initial application of the electrode pressure on the work and the initial application of current to make the weld. During th

Illustrate the babcock and wilcox boiler, How the boiler are classified? Sk...

How the boiler are classified? Sketch and define the babcock & Wilcox boiler and also Compare the water tube boiler and fire tube?

Determine the resultant of force system, Q: Determine the resultant of forc...

Q: Determine the resultant of force system which is acting tangential to the circle of radius 1m as shown in the figure given below. Also find the direction of it and line of actio

Advantages of using cam, 1. Greater Design Freedom : Any changes that are ...

1. Greater Design Freedom : Any changes that are required in design can be incorporated at any design stage without worrying about any delays since there would hardly be any i

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