A profit-maximizing, perfectly competitive firm produces a single output from two inputs. The logarithm of the maximized profit function is given by: Int (p,r, w) = a, + a, In w + a, In r + a, ln p

Q: machines (K). The quantity of products produced in a month is given by the function Q = 3KL. Each…

A: Q = 3KL Fixed Cost = 15,000 Variable Cost = 5000

Q: The law of diminishing returns happens when each additional unit of a variable input results in a…

A: The law of diminishing returns is also known as law of variable proportion. It is applicable on…

Q: • A firm's production function is initially Q = VKL Over time, the production function changes to Q…

A: The initial production function is: The marginal products are:

Q: Find the average cost function if cost and revenue are given by C(x) = 127 + 8.6x and R(x) =…

A: Given cost function:- C(x) = 127 + 8.6x x = units of output produced

Q: Find out the maximum possible output for a firm with 12 units of L and 24 units of K when production…

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Q: Production Function with Two Inputs Assume that a firm choose K and L inputs. At the start of a…

A: Given information Y=ALαKβ Price is paid to Labor=W Price Paid to capital=r Total cost=LW+Kr

Q: Which of the following properties may not necessarily hold for Cobb-Douglas production functions? I.…

A: The Cobb-Douglas production function is given as follows: Q = A LaKb Here, L is labor. K is capital.…

Q: If Total Revenue = 25Q-2Q^2, graph the Total Revenue function and using the average cost function,…

A: By putting the different values of the quantity in the total revenue function we will get the total…

Q: Find out the maximum possible output for a firm with zero unit of L and 10 units of K when its…

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Q: A firm's isoquant map is depicted below. Which of the following statements are true? K 25 20 15 10…

A: The given isoquant curve...

Q: The total cost function of a firm is:- 23Q² - 13Q + 40 Find the average cost function

A: The total cost (TC) is divided by the entire output to get the average cost of production (Q). All…

Q: The technology for making nails is described by the Cobb-Douglas production function Q(L,K) = L*K,…

A: MRTS is the marginal rate of technical substitution which is the rate at which one input is…

Q: Derive profit function based on the Cobb-Douglas production function 1/3 2/3 of y = x x,

A: The profit function is the difference between revenue earned by the producer and the cost incurred…

Q: The absolute value of the slope of a firm's isocost line is equal to the ratio of...

A: Isocost line is the line which shows different combinations of labor and capital, or any other two…

Q: For a short-run cost function which of the following statements is (are) not true?

A: The marginal cost function intersects the average variable cost function where the average variable…

Q: Given prices for the two inputs as w1 = 1, w2 = 2, find the cost function of the (attached)…

A: Answer to the question is as follows:

Q: Normal profits are Multiple Choice   the profits reported by accountants on a firm's annual…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

Q: The cost function for Managerial Enterprises is given by C(Q) = 20 + 3Q2. Determine the marginal…

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Q: The vertical distance between a firm's total cost (TC) and variable cost (VC) curves O is equal to…

A: The total cost of any firm includes its fixed costs and its variable costs that occurred during…

Q: A competitive firm has a technology function defined as Q = f(K,L) = K^2+ KL. Here, Q is the weekly…

A: Production function : Q = K2 + KL  Price of output = 6  Wage rate (w)= 54  Capital Cost(r) = 25…

Q: Find the average cost function for each firm

A: Total cost is the expenditure that is incurred in the production of goods and services. It is the…

Q: Q10 A firm's least-cost position for producing a given output level occurs at that point where…

A: Q10 A firm's least-cost position for producing a given output level occurs at that point where…

Q: Find out the maximum possible output for a firm with 12 units of L and 24 units of K when its…

A: We have to find maximum possible output for a firm with,  Labour (L) = 12 units  Capital (K) = 24…

Q: When a firm is experiencing economies of scale, long-run Group of answer choices average total cost…

A: Economies of scale is a situation in economy where the organizations or firms are able to produce…

Q: If output q= 4(√L) then marginal product of L( the slope of the q function) is ........ and when L=9…

A: The marginal product of labour is the increase in output that occurs when an additional unit of…

Q: If a cobb-douglas production function shows decreasing returns to scale (that is the exponents sum…

A: Cobb Douglas's production function is a particular kind of functional form that shows the…

Q: Suppose a producer faces the following production function: K^0,5.K^0,5 given that L is the unit of…

A: The total cost refers to the expenditure incurred by the producer in producing all units of goods or…

Q: Demonstrate your understanding of the law of diminishing marginal returns.

A: Law of diminishing marginal productivity states that the marginal production from the additional…

Q: which of  the following functions satisfy the following properties: i) Increasing in both inputs.…

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Q: A firm has the following production function where q represents the output level per week, L…

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Q: firm has the following production function: q = 8KL, where q is the weekly output, K is the number…

A: Firm's production function: q = 8KL K=10 machines Every machine rents for $50,000 per week and every…

Q: Find the cost function for the marginal cost function. c'(x) = 0.06 e 001x. fixed cost is S7 C(x) =|

A: We are going to find total cost function by integrating marginal cost function to answer this…

Q: Diminishing marginal returns implies:

A: Diminishing marginal returns  The law of diminishing returns is the fundamental principal of…

Q: If a production function exhibits decreasing returns to scale, then the average variable costs are…

A: ANSWER STEP-1 If A Production Function Exhibits Decreasing Returns To Scale, Then The Average…

Q: Which of the following best describes the isoquants of the production function: q=0.5L+0.3K a.…

A: OPTION B - Linear and Downward Sloping q=0.5L+0.3K  Here, labor and capital are perfect substitutes.

Q: A firm´s production function is given by: y = x² where y is the total output per time period, and x…

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Q: unconstraint optimization Production function, given Q=L2+K2-2L+1, find the maximum and minimum…

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Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We have Linear Isoquant, a*L+ b*K = QWhen L=0 and K = 10, Q = 100a(0) + b(10) = 100b = 10;Therefore,…

Q: Assume there is a linear isoquant where the input combination  K = 10, L = 0 produces Q = 100.…

A: We are going to find the production function first to check whether these two inputs are perfect…

Q: Consider the Cobb-Douglas production function: 1. Derive the conditional input demands. 2. Derive…

A: Given  Production function: f(x1,x2)=Ax1αx212-α                ... (1) Let P1 and P2 be the input…

Q: When a firm triples its inputs and finds that its output has less than tripled this is known as:…

A: Production function is a definite mathematical relation between factor inputs and output generated,…

Q: Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as…

A: "Diseconomies of scale occurs when each item produced cost more and more as a firm continue to grow…

Q: If a business has a long-run cost (TC) function given by TC = aq' – bq² + cq where q = the rate of…

A: Given  Total cost function TC=aq3-bq2+cq              ... (1) q= rate of output  a, b and c are…

Q: A firm’s production function is - y = f(X1, X2)= X11/2 + X1X2 , Where X1≥0, X2≥0 1. Find its…

A: The returns of scale are of three types 1. Increasing returns of scale 2. Constant returns of scale…

Q: Find out the maximum possible output for a firm with two units of L and 50 units of k when its…

A:

Q: The minimum efficient scale of a firm: Multiple Choice is realized somewhere in the range of…

A: Minimum Efficient scale is a point between economies of scale and diseconomies of scale.

Q: Determine whether each of the production functions below displays constant, increasing, or…

A: Answer in step 2.