consider the following: Wagner tool produces output according to q = 2k1/2 L1/2, where K is the amt of capital used and L is the amt of labor employed. Wagner is constrained in the short run to use 16 units of capital. labor cost $8 per unit, capital cost $2 per unit. at q output = 48, and the associated use of labor, what is the avg and marginal product of labor respectively?

a. 1.33, 0.66

b. .66, 1.33

c. 3, .25

d. 1, 1

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Darryn D'SouzaLv10

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Assume that a perfectly competitive firm produces widgets and can produce them using any of three processes. The following table indicates the amounts of labor and capital required by each process to produce one widget.

Process A: Units of labor- 4 Units of capital- 1

Process B: Units of labor- 2 Units of capital- 2

Process C: Units of labor- 1 Units of capital- 1

a.) Assuming that capital costs $3 per unit and that labor cost $1 per unit, which of the three processes will the perfect competitor employ and why? b.) Plot the three Total Variable Cost for the selected production processes for Q= 10, Q= 30 and Q= 50.

c.) At each of the levels of output, determine the number of units of labor and Capital employed. d.) Compute the following:

Q= 10 TFC TVC MC

Q= 30 TFC TVC MC

Q= 40 TFC TVC MC

ceruleangoose680

A firm produces output according to a production function:

Q = F(K,L) = min {2K,2L}.

a. How much output is produced when K = 2 and L = 3?

b. If the wage rate is $65 per hour and the rental rate on capital is $35 per hour, what is the cost-minimizing input mix for producing 4 units of output?

Capital:
Labor:

c. How does your answer to part b change if the wage rate decreases to $35 per hour but the rental rate on capital remains at $35 per hour?

	Capital and labor increase.
	Capital decreases and labor increases.
	It does not change.
	Capital increases and labor decreases.

1. Suppose that a firm is producing in the short run with output given by:

Q = 50L - .75L² ,

The firm hires labor at a wage of $16 per hour and sells the good in a competitive market at P = $8 per unit. Find the firm's optimal use of labor and associated level of output.

2. Determine whether the following production functions are characterized by increasing decreasing or constant returns to scale:

a. Q = 20 +3K + 2L

b. Q = 50 K^.75 L ^.5

c. Q = 75 K^.5 L ^.5