All of the following have a few things in common that we discussed in class. After answering them write a summary of what those things are?
1. Consider a firm with production function f(L, K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the cost of producing q units is?
A.
C(q)=3+q2/9.
B.
C(q)=10+q3.
C.
C(q)=5+q3/9.
D.
C(q)=2/3+q2/3.
E.
C(q)=1/3+q3/3.
2. Consider a firm with production function f(L, K)= 4L2/3K1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the average cost of producing q units is?
A.
AC(q)= 4/q+q1/2/4.
B.
AC(q)= 2/q+1/4q1/3.
C.
AC(q)= 2/3q+1/q1/3.
D.
AC(q)= 1/3q+q1/2.
E.
AC(q)=8/q+2q1/2.
Consider a firm with production function f(L, K)= 4L2/3K1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the marginal cost of producing q units is?
A.
MC(q)= 3q1/2/8.
B.
MC(q)= 2/3q1/3.
C.
MC(q)=3/2q1/2.
D.
MC(q)=3q1/2.
E.
MC(q)=1/6q1/3.
All of the following have a few things in common that we discussed in class. After answering them write a summary of what those things are?
1. Consider a firm with production function f(L, K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the cost of producing q units is?
| A. |
C(q)=3+q2/9. |
|
| B. |
C(q)=10+q3. |
|
| C. |
C(q)=5+q3/9. |
|
| D. |
C(q)=2/3+q2/3. |
|
| E. |
C(q)=1/3+q3/3. |
2. Consider a firm with production function f(L, K)= 4L2/3K1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the average cost of producing q units is?
| A. |
AC(q)= 4/q+q1/2/4. |
|
| B. |
AC(q)= 2/q+1/4q1/3. |
|
| C. |
AC(q)= 2/3q+1/q1/3. |
|
| D. |
AC(q)= 1/3q+q1/2. |
|
| E. |
AC(q)=8/q+2q1/2. |
Consider a firm with production function f(L, K)= 4L2/3K1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the marginal cost of producing q units is?
| A. |
MC(q)= 3q1/2/8. |
|
| B. |
MC(q)= 2/3q1/3. |
|
| C. |
MC(q)=3/2q1/2. |
|
| D. |
MC(q)=3q1/2. |
|
| E. |
MC(q)=1/6q1/3. |
Related textbook solutions
Related questions
This is due today!! Thank you!!
Consider a firm with production function f(L, K)=2L+6K. Assume that capital is fixed at K=6. Then, the amount of labor necessary to produce q units is?
| A |
L(q,6)= q-12 |
|
| B |
L(q,6)= q/18-5 |
|
| C |
L(q,6)= q/2-18 |
|
| D |
L(q,6)= 3q/5-2 |
|
| E |
L(q,6)= q2/2-12 |
Consider a firm with production function f(L, K)= 4L2/3K1/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=4 and the price of labor w=2. Then, the average cost of producing q units is?
| A |
AC(q)= 4/q+q1/2/4. |
|
| B |
AC(q)= 2/q+1/4q1/3. |
|
| C |
AC(q)= 2/3q+1/q1/3. |
|
| D |
AC(q)= 1/3q+q1/2. |
|
| E |
AC(q)=8/q+2q1/2. |
Consider a firm with production function f(L, K)=3L1/3K2/3. Assume that capital is fixed at K=1. Assume also that the price of capital r=5 and the price of labor w=3. Then, the cost of producing q units is?
| A |
C(q)=3+q2/9. |
|
| B |
C(q)=10+q3. |
|
| C |
C(q)=5+q3/9. |
|
| D |
C(q)=2/3+q2/3. |
|
| E |
C(q)=1/3+q3/3. |
Please Answer the following Thank you!
Consider a firm with production function f(L, K)=3L+8K. Assume that capital is fixed at K=12. Assume also that the price of capital r=10 and the price of labor w=3. Then, the average cost of producing q units is?
| A |
AC(q)=24/q+3 |
|
| B |
AC(q)=88/q+1/12 |
|
| C |
AC(q)=24/q+1 |
|
| D |
AC(q)=114/q+9/8 |
|
| E |
AC(q)=24/q+q |
Consider a firm with production function f(L, K)=3L+8K. Assume that capital is fixed at K=12. Assume also that the price of capital r=10 and the price of labor w=3. Then, the cost of producing q units is?
| A |
C(q)=88+q/12 |
|
| B |
C(q)=24+3q |
|
| C |
C(q)=114+9q/8 |
|
| D |
C(q)=24+q2 |
|
| E |
C(q)=24+q |
Consider a firm with production function f(L, K)=3L+8K. Assume that capital is fixed at K=12. Assume also that the price of capital r=10 and the price of labor w=3. Then, the average fixed cost of producing q units is?
| A |
F=100/q. |
|
| B |
F=36/q. |
|
| C |
F=40/q. |
|
| D |
F=120/q. |
|
| E |
F=80/q. |
