Problem consider the following production function fk l 2k, Ask an Expert

Economics

Problem: Consider the following production function f(K, L) = 2K + 3L. Suppose w is the wage paid for each unit of labor, and r is the capital return.

a) What kind of returns to scale has this production function?

b) Solve the cost minimization problem when w = 1 and r = 3.

c) What if now w = 3 and r = 1? Solve it.

d) Draw a picture with both cases. Explain the situation in your picture.

e) Calculate the cost function. f) What type of scale economies does it have?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92586284

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question what is mediation in the collective bargaining

Question: What is Mediation in the Collective Bargaining Process? What are the advantages of mediation? How does Mediation differ from Interest Arbitration? The response must be typed, single spaced, must be in times new ...

Question explain these questionsa compare the marginal

Question: Explain these questions a. Compare the Marginal Revenue Curve for a firm in the PC-market with the Marginal Revenue Curve for the monopolist. b. Explain in your own words why a company that creates a negative e ...

Question requires calculus the demand facing a monopolist

Question: (Requires calculus) The demand facing a monopolist is Q = 50 - 2P and total cost is TC = Q + 4Q 2 Find the monopolist's optimal price, quantity, and profit. Graph the solution. a. If this were instead a ...

Question in the united kingdom and several other countries

Question: In the United Kingdom and several other countries, the loser of the case pays the winner's legal fees. Do you expect to see plaintiffs' attorneys operating under contingency arrangements in these countries? Why ...

Q 1 what is the difference between micro and macro

Q. 1. What is the difference between micro and macro economics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.

Question suppose a gym faces inverse demand pqi a - bqi

Question: Suppose a gym faces inverse demand p(qi) = a - bqi from each of N identical customers, and costsrepresented by C(Q) = cQ. Without competition, this would imply that qi = (a- c)/2b , and p = (a+c)/2 . The is one ...

Question suppose a firm has a labor demand curve given by w

Question: Suppose a firm has a labor demand curve given by w = 20 - 0.01E. Furthermore, suppose that the union representing workers in the firm derives utility from the wage rate and the level of employment according to ...

Question for this scholarly activity develop a supporting

Question: For this scholarly activity, develop a supporting human resource (HR) plan for an organizational strategy. Research a company that has undergone (or attempted to undergo) a shift in organization or culture with ...

Question define what is generally meant by the term law

Question: Define what is generally meant by the term law. Then give an example of a federal law by naming it and say which branch of government wrote the law. The response must be typed, single spaced, must be in times n ...

Assignment consumer demand analysis and estimation applied

Assignment: Consumer Demand Analysis and Estimation Applied Problems Please complete the following two applied problems: Problem 1: Patricia is researching venues for a restaurant business. She is evaluating three major ...

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

Recent Questions

Ask Microeconomics Expert