Learn more about our help with Assignments: Economics
Search & Filtering
Explain the price elasticity of demand of -0.12 for consumer product?
Difference between microsoft and macroeconomics end itself illustrations with examples
Illustration of macroeconomics
The marginal product of labor function for International Trading Inc. is given by the equation: MPL(sub-L) = 10 *(K^0.5/L^0.5)
Currently, the firm is using 100 units of capital and 121 units of labor. Given the very specialized nature of the capital equipment, it takes six to nine months to increase the capital stock, but the rate of labor input can be varied daily. If the price of labor is $10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? If not, explain why, and determine the optimal rate of labor input.
Currently, the firm is using 100 units of capital and 121 units of labor. Given the very specialized nature of the capital equipment, it takes six to nine months to increase the capital stock, but the rate of labor input can be varied daily. If the price of labor is $10 per unit and the price of output is $2 per unit, is the firm operating efficiently in the short run? If not, explain why, and determine the optimal rate of labor input.
Suppose the price of one unit of labor is Rs. 10 and the price of a unit of capital is Rs. 2.50.
a. Use this information to determine the isocost equations corresponding to a total cost of Rs. 200 and Rs. 500.
b. Plot these two isocost lines on a graph.
c. If the price of labor falls from Rs. 10 per unit to Rs. 8 per unit, determine the new Rs. 500 isocost line and plot it on the same diagram used in part (b).
a. Use this information to determine the isocost equations corresponding to a total cost of Rs. 200 and Rs. 500.
b. Plot these two isocost lines on a graph.
c. If the price of labor falls from Rs. 10 per unit to Rs. 8 per unit, determine the new Rs. 500 isocost line and plot it on the same diagram used in part (b).
For the production function Q = 20k0.5L0.5 determine four combination of capital and labor that will produce 100 and 200 units of output. plot these points on a graph and use them to sketch the 100- and 200- units isoquants.
The production function for Superlite Sailboats, Inc., is
Q = 20K0.5L0.5
with marginal product functions
MPK=10L0.5K-0.5 and MPL=10K0.5L-0.5
a. If the price of capital is $5 per unit and the price of labor is $4 per unit, determine the expansion path for the firm.
b. The firm currently is producing 200 units of output per period using input rates of L=4 and K=25. Is this an efficient input combination? Why or why not? If not, determine the efficient input combination for producing an output rate of 200. What is the capital-labor ratio?
c. If the price of labor increases from $4 to $8 per unit, determine the efficient input combination for an output rate of 200. What is the capital-labor ratio now? What input substitution has the firm made?
Q = 20K0.5L0.5
with marginal product functions
MPK=10L0.5K-0.5 and MPL=10K0.5L-0.5
a. If the price of capital is $5 per unit and the price of labor is $4 per unit, determine the expansion path for the firm.
b. The firm currently is producing 200 units of output per period using input rates of L=4 and K=25. Is this an efficient input combination? Why or why not? If not, determine the efficient input combination for producing an output rate of 200. What is the capital-labor ratio?
c. If the price of labor increases from $4 to $8 per unit, determine the efficient input combination for an output rate of 200. What is the capital-labor ratio now? What input substitution has the firm made?
Contrast the nominal GDP and real GDP. Why do economists consider real gdp as a more reliable measure for comparing changes in the production level over a series of years?
Spending by local government can be regarded as ?
The production function for Baroda Foods Ltd. is
Q = 30K 0.5 L 0.5
The initial prices of the input are W = 20 and r = 30.
Under the labor contract with a national union, at least the current employment level of 300 workers must be maintained through the next production period. ( However, more workers can be hired if necessary).
( a) in the previous production period, the firm produced 4,899 units of output. Assuming efficient production, what was the rate of capital input ?
( b) Because of the national recession, the desired level of output for the next production period is only 4,000 units. what is the optimal rate of capital input ?
Q = 30K 0.5 L 0.5
The initial prices of the input are W = 20 and r = 30.
Under the labor contract with a national union, at least the current employment level of 300 workers must be maintained through the next production period. ( However, more workers can be hired if necessary).
( a) in the previous production period, the firm produced 4,899 units of output. Assuming efficient production, what was the rate of capital input ?
( b) Because of the national recession, the desired level of output for the next production period is only 4,000 units. what is the optimal rate of capital input ?
