For the production function Q = KO.4L0.6 and the budget 124 = 3K + 5L find the NEW LEVEL of the cost (budget) for the new optimal employment of capital (K) and labor (L) in the long run after output has change by a factor of 1.5. Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 1.2, 1.14 1.1).
Q: If the Bank of Canada were to conduct an open market sale, it would Select one: a. decrease the…
A: Open market operation is a monetary policy tool. Open market operation is the sale and purchase of…
Q: QUESTION 1 For the utility function U = (Qx0.5+Q,0.5)2 and the budget 138 = 12Qx + 13Qy find the…
A: The utility function is given as The budget equation is given as The price of the X is increased by…
Q: 17. (Figure: Laffer Curve 3) A supply-side economist is advocating reducing income tax rates. She is…
A: The Laffer curve is a theoretical relationship between tax rates and tax revenue. It is named after…
Q: Calculate the present worth of all costs for a newly acquired machine with an initial cost of…
A: Present worth refers to the value that the future asset or the future investment alternative has at…
Q: All other things equal, if the demand for bonds increases, the price of bonds will will increase…
A: Demand for bonds increasesThis is because there are more buyers willing to pay higher prices for the…
Q: 1.. Consider the following GDP data (IMF, WEO Database) China U.S.A. Nominal Real | Nominal Real…
A: Nominal GDP more is the total value of all goods and services that are produced inside its…
Q: On the following graph, use the orange points (square symbol) to plot points along the portion of…
A: Supply is the total amount of goods and services offered to the consumers for sale. Supply holds a…
Q: The Contractionary Monetary Policy used in the article is Taxation. (ii) Carefully explain, in as…
A: Monetary policy is done to control and manage the amount of money in circulation and interest rates…
Q: Refer to the accompanying figure. In this game, how many dominant strategies does Player B have?…
A: Game Theory refers to the study of mathematics that deals with the decisions of players or agents…
Q: The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average…
A: Decisions about how long to stay in the market and how much to produce must be made by businesses in…
Q: "Suppose the parameters of the IS curve are a=0, b=3/4, and the MPK is r = 2%. Suppose also that…
A: In macroeconomics, aggregate demand (AD) refers to the total demand for goods and services in an…
Q: Suppose that a firm produces wooden train engines in a monopolistically competitive market. The…
A: A monopolistically competitive firm produces at the intersection of MR and MC curves. Hence, the…
Q: Calculate the missing information in the table 1.1 taking into consideration that the base year is…
A: The GDP deflator is a measure used to gauge the overall level of prices in an economy relative to a…
Q: The town of Grayling has 10 thousand residents who produce fish from fish farms and lakes. Each…
A: Nash equilibrium is a sub-topic of game theory in which players play games and use strategy and…
Q: 1. A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that…
A: The objective of this question is to understand the impact of market structure on the price and…
Q: Assume the following to be a portion of the simplified balance of payments statement for a…
A: The simplified balance of payment table for the given economy is stated below.…
Q: Consider the following equations for a small open economy for both the goods and money markets. C =…
A: Aggregate demand refers to the total quantity of goods and services that households, businesses,…
Q: Amy Bob and Carry have the following reservation prices for goods X and Y Good X Good Y Amy 120 5…
A: Find the optimal prices for goods X and Y.Calculate the maximum profit from pure bundling.Evaluate…
Q: A firm produces its output using the following production function: 1 f(x1, x₂) = x₁x₂ where x₁ is…
A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…
Q: PRICE LEVEL R LRAS O O Q AD: QUANTITY OF OUTPUT P in the short run and the long run. R in the short…
A: The economic relationship between the overall demand and supply is represented through the AD-AS…
Q: The classical dichotomy implies that nominal variables are not affected by real variables. True or…
A: INTRODUCTION: The classical dichotomy, originating from the works of economists like David Hume and…
Q: Label the descriptions as one of the official measures of unemployment. Some of these are included…
A: People who are not working but are able to work and must have actively looked for a job within the…
Q: Consider a tropical island economy with only two sectors: souvenir manufacturing and hospitality…
A: There are only 2 sectors in the economy: Souvenier manufacturing & Hospitality. It is provided…
Q: (Figure: Shifts of the AD-AS Curves) Use Figure: Shifts of the AD-AS Curves. A decrease in wages in…
A: This can be defined as a concept that shows the total demand for the products and services in a…
Q: - Initial Post. Due Wednesday -- 2 Comments Due Friday
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: The flat line from axis to axis is called a/an Capital N Select one: 56 Labor a. iso-quant curve b.…
A: Isocost lines are similar to that of the budget constraint line showing a different number of inputs…
Q: (2022 Spring Final Q65-69) Suppose a railway monopolist faces a demand curve and total cost curve…
A: Demand curve: P = 144-0.5QTotal cost: TC = 3864+5QMarginal Cost: MC = 5
Q: Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor…
A: It is applied to series of cash flows happening at various times and represent time worth of…
Q: The figure on the right shows a pair of budget deficit functions for a country (G+iD-T), denotes the…
A: The budget deficit function, which expresses the difference between government expenditures (G) and…
Q: Calculate the missing information in the table below taking into consideration that the base year is…
A: Nominal GDP (Gross Domestic Product) is a measure of the total value of all final goods and services…
Q: The economy of Morin is shown in the figure below. Price Level 170 150 130 110 90 The Economy of…
A: Real GDP is the value of the output produced over a period. This may be in a quarter or a year. It…
Q: Which of the following are reasons why the Fed targets an inflation rate greater than 0%? Inflation…
A: Inflation measures the rate at which the general price level in an economy rises.
Q: Exhibit: Price Discrimination Price $15 $10 $7.50 $5 20 30 Quantity 40 MC=AC = $5 D 60 (Exhibit:…
A: A market often consists of unique products that are sold by a single seller. These sellers have the…
Q: 4. Which of the following statements are FALSE? (a) When the government prints money to buy…
A: The objective of the question is to identify which of the given statements are false in the context…
Q: St. John's Brewery (SJB) is getting ready for a busy tourist season. SJB wants to either increase…
A: In probability, the expected value is calculated by multiplying the probabilities with possible…
Q: Interest Rate 8765432 11 0 Sm Dm 100 200 300 400 500 600 Quantity of Money ($ billions) If the…
A: Bond is a debt instrument issued by government or corporation to raise money in financial…
Q: The monopoly graph above shows a business with O Economic Profit O Economic Losses TO Zero Economic…
A: This can be defined as a concept that shows the cost incurred in the production process of a…
Q: Which of the following statements is incorrect? A)MC curve passes through the minimum point of the…
A: Costs refer to the expenses incurred by a business or individual in the process of producing goods,…
Q: An investor gathers the data for Disney Inc., (DIS) presented in the following table: Net Income…
A: The Sustainable Growth Rate (SGR) is a financial measure that measures the rate at which a company…
Q: Price $22 16 10 6 N Tax 300 600 a. $600 O b. $900 OC. $2200 d. $1800 Quantity Refer to Figure 8-6.…
A: Consumer surplus is the difference between the price that a consumer is paying and the price he is…
Q: Cumulative share of people Cumulative share of income 100% 0% 100% Which of the following statements…
A: Lorenz curve is a graphical representation of the share of various percentages of population in…
Q: Use the photo at exercise 14 to solve the problem below With the Firm Y response function…
A: In economics, the game of Stackelberg, two players with the leading and trailing firms function in…
Q: There are three players in this simultaneous move game. Player-3 chooses between game A and game B.…
A: Nash equilibrium is a sub-topic of game theory in which players play games and use strategy and…
Q: This exercise points to a clear policy dilemma. A fiscal contraction may have desirable long-run…
A: Contractionary fiscal policy is a type of economic policy that is used to slow down an economy that…
Q: Refer to Figure 8-5. Which area represents producer surplus after the tax is levied on the consumer?…
A: The producer surplus is the gap between actual price a producer receives and minimum price a…
Q: Refer to the table below. Note that the first column shows variable costs. Quantity Cost Fixed Total…
A: The total revenue will be calculated as price multiplied by the quantity of units sold
Q: 1. Good A normally costs $50, but for any purchase of more than 10 units, a discounted price of $20…
A: a. To illustrate the budget line for the given scenario, we need to consider two segments due to the…
Q: 2. Individual Problems 17-2 You're a contestant on a TV game show. In the final round of the game,…
A: The expected payoff is the payoff that is expected to be gained after knowing the probability of…
Q: 3. Suppose the money demand function is: Md/P= 1,000 - 100r where r is real interest rate in…
A: "As per the policy, we can provide solution to the first three subparts. Kindly raise the question…
Q: The following information relates to a project Year Cash flow Sh. 'Millions' (16) 8 10 1 2 3 4 6 15…
A: To advise management on the optimum time to abandon the project, we need to calculate the Net…
Please get correct.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
- Q5The rate of change of the function f(x) =x + 2 /1 − 8xwith respect to x when x = 1. (i) The number of units Q of a particular commodity that will be produced with K thousand dollars of capital expenditure is modeled by Q(K) = 500 K^2/3. Suppose that capital expenditure varies with time in such a way that t months from nowthere will be K(t) thousand dollars of capital expenditure,whereK(t) =2t4 + 3t + 149 /t + 2 Required:(a) What will be the capital expenditure 3 months from now? How many units will be producedat this time? (b) At what rate will production be changing with respect to time 5 months from now?Will production be increasing or decreasing at this time?QUESTION 1 For the production function Qs = | K0.8 0.3 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).100VKL, where q is 4. The production function for puffed rice is given by q = the number of boxes produced per hour, K is the number of puffing guns used each hour, and L is the number of workers hired each hour. (a) Calculate the q = 1,000 isoquant for this production function and show it on a graph. (b) If K = 10, how many workers are required to produce q =1,000? What is the average productivity of puffed-rice workers? (c) Suppose technical progress shifts the production function to q = 200 VKL. Answer parts (a) and (b) for this new situation.
- a) SUPPOSE A FRIM PRODUCE OUTPUT USING THE PRODUCTION FUNCTION Q= 5KL .WAGE RATE FOR HIRING LABOR IS 200 AN HOUR AND COST OF USING CAPITAL IS 100 PER HOUR. FIND OUT THE OPTIMAL QUANTITIES OF LABOR(L*) AND CAPITAL(K*) TO PRODUCE 1000 UNITS OF OUTPUT? ALSO SHOW THE RESULT GRAPHICALLY AND INTERPRET .Given a production function with a specific amount of fixed resources and one variable resource, which one of the following statements is correct?A The maximum average product occurs at peak production.B Increasing returns to variable input only occur with increasing production.C The y-intercept (i.e. the output at zero input) is equal to the fixed resourcesD Production may increase even when the marginal product is negative.E The marginal product increases until the point of inflexion.The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: CREW SIZE (NUMBEROF WORKERS) AMOUNT OF FISH CAUGHT PERWEEK (HUNDREDS OF LBS) 2 3 4 5 6 7 8 9 10 11 12 3 6 11 19 24 28 31 33 34 34 33 a. Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns?b. How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c. How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per worker?
- For the production function Qs = K0.4L0.1 find the returns to scale, recall that a doubling of inputs that doulbes output is a CONSTANT returns to scale = 1.0 Please enter your response as a positive number with 1 decimal and 5/4 rounding (e.g. 1.15 = 1.2, 1.14 = 1.1).The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: CREW SIZE (NUMBEROF WORKERS) AMOUNT OF FISH CAUGHT PERWEEK (HUNDREDS OF LBS) 2 3 4 5 6 7 8 9 10 11 12 3 6 11 19 24 28 31 33 34 34 33 a. Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns?b. How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c. How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per worker? Expert Solution arrow_forward Step 1 The marginal and average product of the worker or labor is useful in calculating the amount of fish that the workers can catch as well as in the real industries also. If the company calculates the average and marginal products, the company can decide on how to…Cost curves Egidio Binaccio designed an ancestry app that allows people to connect with long lost Italian relatives. Egidio notices the following relationship between the number of hours he schedules and the number of downloads (sales) he gets. Below is a production function, for Egidios current company set up. NUMBER of LABOUR DOWNLOADS HOURS B) 10 C) 20 30 40 50 60 70 80 90 100 110 120 130 140 6.50 11.00 14.50 17.50 20.50 23.75 27.50 32.00 37.50 44.50 53.50 65.00 79.50 97.50 TVC TC MC AVC Suppose the firm can hire all the labour it would ever want at the going wage of $8 per labour-hour. The firm's total fixed costs are $64 per day. A) ATC Fill in the table showing total variable cost (TVC), total cost (TC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). [Remember: Marginal cost should be entered midway between rows of output.] On a graph with DOWNLOADS (per day) on the horizontal axis, draw the three "per-unit" cost curves, AVC, ATC, and MC. [Note…
- (i) Find the rate of change of the function f(x) =x + 2/ 1 − 8x with respect to x when x = 1.(ii) The number of units Q of a particular commodity that will be produced with Kthousand dollars of capital expenditure is modeled by Q(K) = 500 K2/3Suppose that capital expenditure varies with time in such a way that t months from nowthere will be K(t) thousand dollars of capital expenditure, whereK(t) =2t4 + 3t + 149 / t + 2 (a) What will be the capital expenditure 3 months from now? How many units will be producedat this time?(b) At what rate will production be changing with respect to time 5 months from now?Will production be increasing or decreasing at this time?The amount of fish caught per week an a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units.Labour Input (No of. Workers) (L) Total Product TPL (Q). From the table below :-(a) Calculate APL and MPL. (b) Graph APL and MPL. Do they have the expected shape? (c) On your graph, identify the three stages of production Labour input (No of Workers) (L) Total Product TP L (Q) 0 0 1 80 2 170 3 300 4 450 5 540 6 620 7 700 8 770 9 830 10 880 11 920 12 950 13 970 14 980 15 985 16 988 17 9882. A company's production output P is given in tons, and is a function of the number of workers N and the value of the equipment V, in units of $25, 000. The production function for the company is P(N,V) = 5N³/¼y/4. The company currently employs 80 workers, and has equipment worth $750, 000. (a) What are N and V in this case? (b) Find Py and Pv, then the values of P, PN, and Py at the values of N and V that you found in (a). (c) Give units and explain what each answer means in this context.