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

Objectives of tools and equipment , Objective: After studying tools and eq...

Objective: After studying tools and equipment, you should be able to list various tools, measuring equipment required in a motorcycle workshop, and identify and use ap

Corrosion of bfw pump, Q. Show Corrosion of BFW Pump? BFW pumps are in ...

Q. Show Corrosion of BFW Pump? BFW pumps are in high-pressure high-temperature service and may be subject to cavitation and erosion-corrosion. Also overheating of these pumps i

Axis perpendicular to the vertical plane - square prism, Axis Perpendicular...

Axis Perpendicular to the Vertical Plane - square prism: Here a square prism, side of base 40 millimeter and axis 60 millimeter long is resting on the HP on its base along wit

Calculate the magnitudes of the force, The end gates of a lock are 5m high ...

The end gates of a lock are 5m high and when closed include an angle of 120 o . The width of the lock is 6.25 m. Each gate is carried on two hinged placed at the top and the bottom

Define the process of submerged arc welding, Define the process of SAW (sub...

Define the process of SAW (submerged Arc welding). And also explain its advantages and disadvantages.

Explain the uses of pier and well foundations, Explain the uses of Pier and...

Explain the uses of Pier and Well Foundations Well foundations are used to transmit large loads from piers of bridges and other marine structures. These are constructions carr

Hydropower scheme, 4. Design a run-of-the river hydropower scheme for a riv...

4. Design a run-of-the river hydropower scheme for a river in the Scottish Borders with potential level different of 15 m carrying water from a catchment area of 14 km by 25 km. I

Impeller design, The function of the impellers is to: (i) reduce bubble siz...

The function of the impellers is to: (i) reduce bubble size thereby increasing the surface area for oxygen transfer, and (ii) maintain a uniform environment, nutrient supply and he

Welding processes, Q. Show the Welding processes The following welding ...

Q. Show the Welding processes The following welding processes are permitted: Shielded Metal-Arc Welding (SMAW) - Do not use SMAW for the root pass of single side groove we

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