Q=180√LK^0.8
L=5
K=10
1).Construct marginal product of labour and marginal product of capital
2If L=5, K=10 Measure average product of labour and average product of capital
3.return to scale production function
4.if K=5, L=10 calculate marginal rate of products.
5.law of diminishing marginal returns of labour and law of diminishing marginal returns of capital
6.how about the cross partial effect of this production function
Suppose the expected real interest rate in South Africa is 3 percent per year while that of United States is 1 percent per year. What do you expect to happen to the real ZAR/USD exchange rate over the next year?
Suppose the cost function is given as C = 135 + 75Q – 15Q2 + Q3. Prepare a cost schedule (table) showing the TFC, TVC, TC, AFC, AVC, MC, and ATC. Is this cost function a short run or a long run cost function? Why? Draw the cost curves on the basis of cost data obtained from the cost function
Suppose the short run market price a competitive firm faces is Birr 9 and the total cost of the firm is: TC = 200 + Q + 0.02Q 2 . Answer the questions that follow.
(A) Calculate the short run equilibrium output and profit of the firm.
(B) Derive the MC, ATC, and AVC and calculate the values at the short run equilibrium output.
(C) Calculate the producers’ surplus at the equilibrium output.
(D) Find the output level that will make the profit of the firm zero.
Suppose that the total utility function of a consumer is given by TU(x,y) = 3x2 y and the prices of X and Y are 1 Birr and 2 Birr per unit, respectively. If the income of the consumer is 600 Birr and if he spends all of his income on the consumption of commodities of X and Y, find the optimum amount of X and Y that the consumer will consume at equilibrium and find MRTSx,y.
Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
Discuss the business factors your company would research before venturing into the global markets? Each factor should be supported by an example.
You decided to put away 5%
of your annual salary for
retirement. Your annual
salary is $20,000 for the first
year (at age 22) and it
increases by 3% every year
until your retirement (at age
50). What will be the worth of
your account when you retire
if the interest is 4.5% per
year?
The useful life of a certain type of light bulb is known to have a= 40 hours. Hoe large a sample should be taken standard deviation of it is desired to have a margin of error of 10 hours or less at a 95% level of confidence?
Suppose the short run market price a competitive firm faces is Birr 9 and the total cost of the firm is: TC = 200 + Q + 0.02Q 2 . Answer the questions that follow.
(A) Calculate the short run equilibrium output and profit of the firm.
(B) Derive the MC, ATC, and AVC and calculate the values at the short run equilibrium output.
(C) Calculate the producers’ surplus at the equilibrium output.
(D) Find the output level that will make the profit of the firm zero.