a) Imagine that the price of input 1 is $16 per unit, the price of input 2 is $25 per unit, and the firm has fixed costs of $60. The firm is in a competitive market where the market price is $240 per unit of output. How much should the firm produce? How much profit does the firm make?
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a) Imagine that the price of input 1 is $16 per unit, the price of input 2 is $25 per unit, and the firm has fixed costs of $60. The firm is in a competitive market where the market price is $240 per unit of output. How much should the firm produce? How much profit does the firm make?
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- Consider a beekeeper. The beekeeper has the following production function where the input is the number of hives and the output is quantity of honey produced. Beehives: 1, 2, 3, 4, 5, 6, 7, 8, 9 , 10, 11 Honey: 12, 23, 33, 42, 50, 57, 66, 71, 75, 78, 80 The cost of installing a beehive is $100 and the price of a unit of honey is $20. Also each beehive increases the output of apples at a nearby apple orchard by $40. 1. What if we wanted to subsidize honey instead? How much should that subsidy be per unit? (Round to one decimal place.)Consider a beekeeper. The beekeeper has the following production function where the input is the number of hives and the output is quantity of honey produced. Beehives: 1, 2, 3, 4, 5, 6, 7, 8, 9 , 10, 11 Honey: 12, 23, 33, 42, 50, 57, 66, 71, 75, 78, 80 The cost of installing a beehive is $100 and the price of a unit of honey is $20. Also each beehive increases the output of apples at a nearby apple orchard by $40. 1. On a graph show how subsidizing honey can lead to the efficient quantity.Consider a beekeeper. The beekeeper has the following production function where the input is the number of hives and the output is quantity of honey produced. Beehives: 1, 2, 3, 4, 5, 6, 7, 8, 9 , 10, 11 Honey: 12, 23, 33, 42, 50, 57, 66, 71, 75, 78, 80 The cost of installing a beehive is $100 and the price of a unit of honey is $20. Also each beehive increases the output of apples at a nearby apple orchard by $40. 1. What is the efficient number of beehives? 2. If there are barriers to negotiation between the beekeeper and the orchardist, how many will the beekeeper install? 3. What if the same person owned the beehives AND the orchard? How many beehives would that person install? 4. Go back to assuming that the beehives and the orchard are owned by different people. Let's say we want to get the efficient quantity by putting a subsidy on beehives. How much should it be per hive? 5. What if we wanted to subsidize honey instead? How much should…
- In the following production function: f(x1, x2) = Ax1α1 x2α2 , where A, α1, α2 > 0. What is the marginal product of input 1?Asap A firm has the following linear production function: Q = 6K + 9L The firm currently owns 10 units of capital (K) and hires 30 workers (L). A) What is the marginal product of labor? B)What is the marginal product of capital?: Suppose that the production functions be like as (A) i) Y = X15 X20.5 ii)Y= X10.5 + X20.5 Find MRTS of these functions
- A firm can manufacture a product according to the production function Q = F(K, L) = K0.5L0.5. (a) What is the average product of labor, APL, when the level of capital is fixed at 36 units and the firm uses 16 units of labor? (b) What is the marginal product of labor, MPL, when capital is fixed at 36 units? (c) Suppose capital is fixed at 36 units. If the firm can sell its output at a price of $100 per unit of output and can hire labor at $40 per unit of labor, how many units of labor should the firm hire in order to maximize profits?Find the MRTS for a firm with production function f(L,K)=(L)^2+vK. Is it diminishing?A firm has the following production function: f(x) = ax? – bx³, where x is the only input, a=2 and b=0.3. For x>0, the average product is increasing until x=. (Answer up to 2 decimal places.)
- Suppose a firm’s production function is given by q = 2KL + L , where K is capital and L is labor. What is the average product of labor (APL) when 5 units of capital are employed?Firm D has production function F(K,L) = aK+2L. Very briefly, what is the interpretation of a in this function?Consider the following production function:F (K ,L) = 2K(a) Graph at least two isoquants and clearly identify at least one point in each