+1-415-315-9853

info@mywordsolution.com

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

Theory of Production:

problem 1: Suppose a firm’s budget were large enough to employ 100 units of either labor or capital, the cost of a unit of labor being the same as a unit of capital. The production function is X = KL . Given that output must be at least 20, what is the maximum number of people the firm could employ?

problem 2: The production function of a small shop that frames pictures is Q = 5 √LK where Q is the number of pictures framed per day, L is labor hours and K is the machine hours. Suppose 9 labor hours and 9 machine hours, are used every day, what is the maximum number of pictures that can be framed in a day? find out the marginal product of labor when 9 labor hours are used each day together with 9 machine hours. Suppose the firm doubles both the amount of labor and machine hours used per day, find out the increase in output. Comment on the returns to scale in the operation.

problem 3: Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the following information: PL = Rs 4, PK = Rs 100, MPL = Rs 4, MPK = Rs 40.

a) Is the firm operating efficiently? Why or Why not?

b) What should the firm do?

problem 4: Suppose that in an isoquant mapping, you should consider three isoquants with 1000, 2000 & 3000 units of output. The price of capital is Rs 2 a unit, and the price of labor is Rs 1 per unit.

a) Construct an expansion path.

b) How many units of each input are used to produce each level of output efficiently?

c) What is the minimum cost of producing each level of output?

d) Answer each problem under the assumption that the price of labor is now Rs 2 a unit and the price of capital is Re 1 a unit.

problem 5: The production function of the personal computers for DISK Company is given by Q = 10 √KL where Q is the number of computers produced per day, K s the hours of machine time, and L is hours of labor input. Disk’s competitor, FLOPPY Company is using the production function Q = 10 K.6 L.4 .

a) If both companies use equal amounts of capital and labor, which will generate more output?

b) Assume that capital is 9 machine hours, but labor is unlimited in supply. In which company is the marginal product of labor the greater? describe.

Theory of Cost:

problem 6: A firm producing hockey sticks has a production function given by X = 2 √KL In the short-run, the firm’s amount of capital equipment is fixed at K = 1000. The rental rate for capital (PK) is PK = v = Re 1.00; and the wage rate for L is PL = w = Rs 4.00.

a) find out the firm’s short-run total cost curve. find out the short-run average cost curve.

b) What is the firms short-run marginal cost function? What are the STC, SATC & SMC for the firm if it produces 25 hockey sticks?

problem 7: Assume that input prices are constant at r = 1, w = 1, with technology which consists of 5 processes having the following properties:

A producer can purchase labor without limit, but can purchase machine-hour only up to a total of 75. find out

a) The producer’s total and average cost of producing 100, 200, 300, 400 and 500 tons.
b) At what output levels will marginal cost change?
c) Give the marginal costs and output ranges over which each level of marginal cost is relevant.

problem 8: A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 and MPC = 2. Show this situation in an isoquant-isocost diagram. describe and show in the diagram, how the firm can produce the same output at a lower total cost.

problem 9: If the marginal product of L is MPL = 10K – L and the marginal product of K is MPK = 10L – K, then what is the maximum possible output when the total amount that can be spent on K and L is Rs 1000 and the price of K is Rs 5 and the price of L is Rs 5.

problem 10: Is a firm minimizing its costs, if the marginal product of labor is six, the marginal product of capital is five, the wage rate is Rs 2.00 and the interest on capital is Rs 1.00? If not what must the firm do to minimize its costs?

Microeconomics, Economics

• Category:- Microeconomics
• Reference No.:- M91189

Have any Question?

## Related Questions in Microeconomics

### Short-run economic fluctuationsplease have by 800 pm west

Short-Run Economic Fluctuations Please have by 8:00 pm west coast time cailfornia time 12/13/2016. Plagrism free, orignal work, and refs. APA format double space. please ask questions right away please dont wait to the l ...

### Assignmentchoose one of the readings from chapters 14 15 or

Assignment Choose one of the readings from chapters 14, 15, or 16 and summarize, explain, and evaluate the main points of the reading in a minimum of 3 paragraphs. Do not simply cut and paste from the reading, but summar ...

### Assignment economics read the following case study and

ASSIGNMENT: ECONOMICS Read the following case study and answer the given question. THE MACROECONOMICS OF POVERTY REDUCTION: THE CASE STUDY OF BANGLADESH Adapted: Osmani, S.R; Mahmud, W; Sen, B; Dagdeviren, H; and Seth, A ...

### Assignment sustainability at top shelf shoesin this course

Assignment: Sustainability at Top Shelf Shoes In this course, you will work independently to analyze sustainability issues for a hypothetical organization. The assignments follow one another so that you can apply the met ...

### Economics assignmentcontentselect a news article with

Economics Assignment Content: Select a news article with economic implications within the previous six months and explain, analyze and expand the issue using the economic concepts and theory learned in this class. Includ ...

### Samsung smartphone manufacturer vs google inc search engine

Samsung (smartphone manufacturer) Vs. Google Inc. (search engine) - economic and financial analysis Objectives: • Assess and compare the market types of Google Inc.(as a search engine) and Samsung • Determine the various ...

### Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

### Suppose the economy was at equilibrium before the start of

Suppose the economy was at equilibrium before the start of the recession. Show this using the IS-LM, Keynesian cross, AD-SRAS-LRAS and money market spaces. Following the start of the recession, what happened to aggregate ...

### Question 1 the agrizone corporation invests 140140 million

Question 1. The Agrizone Corporation invests \$14.014.0 million in a new inventory tracking system. A. The opportunity cost of Agrizone's decision is the value of leaving the money unutilized. B. The opportunity cost of A ...

### Application evaluation of research resultsno research

Application: Evaluation of Research Results No research project or study is perfect. Studies that contain errors can produce unreliable or misleading results. As a consumer of research, you must be able to determine the ...

• 13,132 Experts

## 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.

### WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

### Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

### Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

### Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

### Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro