Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Suppose that widgets can be produced using the two different production techniques A and B on a daily basis. The following table provides the total input requirements for each of the five different total output levels.

Q= 10 Q= 20 Q= 30 Q= 40 Q= 50
Tech K L K L K L K L K L
A 3 3 2 6 3 9 4 12 6 24
B 4 2 8 3 12 4 16 4 20 6

a. Assume the price of labor (Pl) is $100 per day and the price of capital (Pk) is $50 per day. find out the total cost of production for each of the five levels of output using the optimal (least cost) technology at each level.

b. How many units of labor would be employed at each level of output? How much capital?

c. Graph the total cost of production as a function of output. (Put total cost on the Y-axis and output on the X-axis)

d. Repeat 1-3 under the assumption that the price of labor is $50 per day and the price of capital is $100 per day.

e. If labor is relatively more expensive than capital, which production technique will be used? How does this ex relate to the U.S. economy?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939244

Have any Question? 


Related Questions in Microeconomics

Assignment 1 markets failures and exceptionsfor each of the

Assignment 1: Markets Failures and Exceptions For each of the following situations, the market system has failed and/or just will not allocate resources efficiently: Situation 1: Firm A produces cement sifters. The proce ...

Problem 1 roberts new way vacuum cleaner company is a newly

Problem 1: Robert's New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q ...

Research proposal economicsa proposal of your research in

Research Proposal Economics A proposal of your research in the form of a 2-page double-spaced typed paper (not including the cover page; use font number 12). Indicate your research topic, describe your research interest ...

Problemdescribe some interaction your company has with

Problem Describe some interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or down-stream customers), or between internal divisions within your firm ...

Why might a profitable motel shut down in the long run if

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut ...

Technological advancement for firms- econin consideration

Technological Advancement for Firms- ECON In consideration of the arguments made by Chandler, Enduring Logic of Industrial Success, answer this question: • What role will technological advancement play in the future evol ...

Problem set onefall 20161consider the attached article from

PROBLEM SET ONE FALL 2016 1. Consider the attached article from the Wall Street Journal. http://www.wsj.com/articles/the-thorny-economics-of-illegal-immigration-1454984443 It is a great application of the net-benefit cal ...

Assignmentlearning activity 1this learning activity focuses

Assignment Learning Activity 1: This learning activity focuses on jurisdiction and ADR. Review closely all assigned materials regarding the legal system. Case Scenario: Ali owns and operates a florist business, Blooming ...

Assignmentlearning activity 1 - theme 1a discuss the

Assignment Learning Activity 1 - Theme 1 a.) Discuss the classifications of organizational theory and their precepts and what can we learn from its history? b.) For businesses to succeed they must maintain a competitive ...

Economicsread the case study on page 27 protecting

Economics Read the case study on page 27 "Protecting Endangered Species with Private Property Rights." Write an essay 1,000-1,250 words, answering the following questions: 1. Economists argue that scarcity is different t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate