Problem 3:Write each production function given below in terms of output per person y =Y/L and capital per person k = K/L. Plot these per person versions in a graphwith y on the vertical axis and k on the horizontal axis. (You can assume Ã isa constant positive number).(a) Y=AK 1/3 L2/3 and Y = AK3/4L1/4 (plot them on the same graph).(b) Y = K.(c) Y = KL(d) YK-AL

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Answered: Problem 3: Write each production…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 8E

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100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.
Q4 The output of a production process, Q, is given by the function KL Q = K+ 2L where K and L denote capital and labor. (a) Calculate the output when the capital and labor are 40 and 30 units, respectively. (b) Find the level of labor needed to produce 4 units of output when 10 units of capital are used. (c) Transpose this formula to express K in terms of Q and L. Q5 3 The equations defining a simple model of the economy are: C = 0.75Y + 18 I = 22 where C, Y and I denote consumption, national income and planned investment, respectively. Use this model to complete the following table of values and hence draw an accurate graph of C + I plotted against Y on the interval 0 < Y< 200. 100 200 C + I By drawing a second line on the diagram, calculate the equilibrium level of national income. Use your graph to explain what happens to the equilibrium level of national income when the marginal propensity to consume decreases with autonomous consumption fixed.
A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is Capital. Where Q is output, L is labor and K is Capital. (a) What sort of returns to scale characterize this production function? (b) Derive the marginal product of labor and capital. (c) What do we mean when we say the production function is linearly homogenous?
Ben's swim coach estimates that his time, t, in the 100-yard butterfly at a big upcoming meet as a function of the number of yards he swims per week, y, is t = 50+8e-0.00005y Based on this production function, his coach also estimates that if Ben swims 20,000 yards per week, his time will be 52.94 seconds, and he will finish tenth place. If he swims 40,000 yards per week, his time will be 51.08 seconds, and he will come in third. If he swims 60,000 yards per week, his time will be 50.40 seconds, and he will win the meet. Use calculus to determine Ben's marginal productivity of time given the number of yards he practices. Is there diminishing marginal productivity of practice yards? Ben's marginal productivity of swim time given y practice yards (MP) is (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ MPy character.)
SOLVE STEP BY STEP IN DIGITAL FORMAT The company Cielito S.A. It manufactures clothing for older adults and has a large presence in Mexico, due to the comfort and good taste of its garments. It has 60 seamstresses who work 8 hours a day; Indirect manufacturing expenses are $9,500.00 MXN. Every day Cielito S.A. produces 1,500 garments. The cost per hour of labor is $55.00 MXN. With this data, you must calculate: a. Labor or labor productivity. b. The productivity of manufacturing indirect expenses. c. The total productivity of Cielito S.A.
5. Determine the degree of homogeneity of each of the following production function and determine the returns to scale. (HINT: The degree of homogeneity tells us a lot about returns to scale) (a) Q= a + 6xy +7y2 (b) Q = r - xy² +3y+?y (c) Q= (d) Q = 0.9K0.2 L0.6 %3D
Assume the following production function for maize: Q=3K^1.2 L^0.5, where Q is the number of bags of maize produced, K is the units of capital used and L the units of the labour employed. (a) Derive the MRTS of K and L. (b) Estimate the factor intensity of the production function and interpret results. (c) Is the above production function characterized by decreasing returns of scale? Explain
Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is: ?=?1/2?1/2?= is the number of pages in the finished book?= is the number of working hours spent by Smith?= is the number of working hours spent by JonesSmith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book.a) How many hours will Jones have to spend to produce a finished book of 300 pages?b) What is the marginal cost of the 300th page of the finished book?
Problem 7 This homework is about returns to scale. Labor, L, and capital, K, are the only inputs in each of the following production functions: 91 = (L+ K')² a 92 = (VI + VR)* b (20 + VT + vR)* 93 = For each production function, use a spreadsheet to find the joutput associated with the following output combinations: L 2, K = 2; L=4, K = 4; and L= 8, K = 8. Determine whether each production unction exhibits increasing returns to scale, decreasing returns to scale, constant returns to scale, or variable returns to scale of this range.
. MTN 3G < Û iii. iv. 12:01 You 30/12/2023, 00:17 Question 5 a) You are a manager for Herman Miller, a major manufacturer of office furniture. You recently hired an economist to work with engineering and operations experts to estimate the production function for a particular line of office chairs. The report from these experts indicates that the relevant production function is Q = 2K0.5 10.5 Where: K represents capital equipment and L is labour. Your company has already spent a total of $9,000 on the 9 units of capital equipment it owns. Due to current economic conditions, the company does not have the flexibility needed to acquire additional equipment. Workers at the firm are paid a competitive wage of $100 per day and chairs can be sold for $400 each. i. ii. и @ 30% All Media Is the firm operating in the short-run or the long-run? Explain. What is your profit-maximizing level of output and labour usage? What is your maximum profit resulting from your answer in (ii)? If shareholders…
*0.65 0.35 where x is the amount of labor and y is the amount of capital. The productivity of a country is given by f(x,y) = 100x (a) Compute the marginal productivities of labor and capital when x = 300 and y = 500. (b) Use part (a) to determine the approximate effect on productivity of increasing capital from 500 to 502 units, while keeping labor fixed at 300 units. (c) What would be the approximate effect of decreasing labor from 300 to 298.5 units while keeping capital fixed at 500 units? (a) The marginal productivity of labor is (Do not round until the final answer. Then round to two decimal places as needed.) The marginal productivity of capital is (Do not round until the final answer. Then round to two decimal places as needed.) (b) When capital is increased from 500 to 502 units, the approximate change in productivity is (Do not round until the final answer. Then round to two decimal places as needed.) (c) When labor is decreased from 300 to 298.5 units, the approximate change…
Returns to scale in production: Do the following production functions exhibitincreasing, constant, or decreasing returns to scale in K and L? (Assume Ais some fxed positive number.)(a) Y = K1/2L1/2(b) Y = K2/3L2/3(c) Y = K1/3L1/2(d) Y = K + L(e) Y = K + K1/3L1/3 (f ) Y = K 1/3L2/3 + A (g) Y = K 1/3L2/3 − A

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