Q: The marginal product of labor in the production of computer chips
The marginal product of labor in the production of computer chips is 50 chips per hour.The marginal rate of technical substitution of hours of labor for hours of machine capital is 1/4.What is the mar...
See AnswerQ: Do the following functions exhibit increasing, constant, or decreasing
Do the following functions exhibit increasing, constant, or decreasing returns to scale?What happens to the marginal product of each individual factor as that factor is increased and the other factor...
See AnswerQ: The ACME Corporation determines that at current prices the demand for
The ACME Corporation determines that at current prices the demand for its computer chips has a price elasticity of –2 in the short run, while the price elasticity for its disk drives is –1. a.If the...
See AnswerQ: The production function for the personal computers of DISK, Inc
The production function for the personal computers of DISK, Inc., is given by q = 10K0.5L0.5, where q is the number of computers produced per day, K is hours of machine time, and L is hours of labor i...
See AnswerQ: In Example 6.3, wheat is produced according to
In Example 6.3, wheat is produced according to the production function q = 100(K0.8L0.2). a.Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and th...
See AnswerQ: Suppose the market for widgets can be described by the following
Suppose the market for widgets can be described by the following equations: Demand:P = 10 – Q Supply:P = Q – 4 where P is the price in dollars per unit and Q is the quantity in thousands of units.Then...
See AnswerQ: Suppose the same firm’s cost function is C(q)
Suppose the same firm’s cost function is C(q) = 4q2 + 16. a.Find variable cost, fixed cost, average cost, average variable cost, and average fixed cost. b.Show the average cost, marginal cost, and ave...
See AnswerQ: Explain the term “marginal rate of technical substitution.”What
Explain the term “marginal rate of technical substitution.”What does a MRTS = 4 mean?
See AnswerQ: Much of the demand for U.S. agricultural output
Much of the demand for U.S. agricultural output has come from other countries.In 1998, the total demand for wheat was Q = 3244 – 283P.Of this, total domestic demand was QD = 1700 – 107P, and domestic...
See AnswerQ: Consumers in Georgia pay twice as much for avocados as they
Consumers in Georgia pay twice as much for avocados as they do for peaches.However, avocados and peaches are the same price in California.If consumers in both states maximize utility, will the margina...
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