Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Suppose a firm's production function is given by Q = L1/2*K1/2. The Marginal Product of Labor and the Marginal Product of Capital are given by:

MPL = , and MPK = .

a) Suppose the price of labor is w = 25, and the price of capital is r = 4. Derive the firm's total cost function.

b) What is the firm's marginal cost?

c) For this problem, you will sketch the graph of the firm's isoquant for Q = 10 units of output, and on the same graph sketch the firm's isocost line associated with the total cost of producing Q = 10 units of output. To get this total cost, you must use the Total Cost function from part a). Please scale your graph up to 100 units of Labor on the horizontal axis, and 100 units of Capital on the vertical axis (do not go above 100 units on either axis). For the isocost line, clearly identify the vertical and horizontal intercepts. For the isoquant, clearly identify 4 combinations of Labor and Capital that will produce Q = 10 (including the bundle that minimizes the firm's cost of production). Make sure your graph is neatly and accurately drawn and carefully labeled.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91232240

Have any Question?


Related Questions in Microeconomics

Question - jiffy-pol consultants is paid 1000000 for each

Question - Jiffy-Pol Consultants is paid $1,000,000 for each percentage of the vote that Senator Sleaze receives in the upcoming election. Sleaze's share of the vote is determined by the number of slanderous campaign ads ...

Question discuss in scholarly detail how a firm can balance

Question: Discuss in scholarly detail how a firm can balance the demands for control/differentiation in the corporate level of management with the need for coordination/integration. The response must be typed, single spa ...

Question the term liberalism when applied to governments is

Question: The term liberalism, when applied to governments, is very different from the term liberal in America. Where liberalism implies a limited government, here in the United States a liberal is not usually seen as su ...

Question effects of proportional income tax on labor supply

Question: Effects of Proportional Income Tax on Labor Supply . Suppose that the government imposes a proportional income tax on the consumer's wage income. That is, the consumer's wage income is (1 - t)w(h - l), where t ...

Question imagine you were hired to be an economic advisor

Question: Imagine you were hired to be an economic advisor to President Trump. Recently Mr. Trump announced that he will be able to boost GDP growth to 4%. Using what you have learned from the Solow Growth Model, explain ...

Question for purposes of this paper and the next portion of

Question: For purposes of this paper and the next portion of your marketing project, pretend that you will be opening one of the following businesses in your area: • Food Truck Vendor • Animal Sitting • Bicycle Repair Sh ...

Question the state of florida sold a total of 361 million

Question: The State of Florida sold a total of 36.1 million lottery tickets at $1 each duringthe first week of January 2006. As prize money, a total of $41 million will be distributed($1,952,381 at the beginning of each ...

Question answer the following in 150-200 words in

Question: Answer the following in 150-200 words. In Federalism, how has the relationship between the national and state governments changed over time? Discuss the types of Federalism (Dual Federalism, Cooperative Federal ...

Question suppose that real gdp is currently 171 trillion

Question: Suppose that real GDP is currently $17.1 trillion, potential GDP is $17.4 trillion, the government purchases multiplier is 2, and the tax multiplier is -1.6. • Holding other factors constant, by how much will g ...

Question the following information is to be used for the

Question: The following information is to be used for the calculation of the unemployment rate: Suppose there are two major groups, adults and teenagers, with adults divided into men and women. Teenagers account for 10% ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved