If a firm has the production function f(k, I) = (2k"* + *) what is the firm's elasticity of substitution? O a. G= Ob. G = Oc. o = 1 Od. o = 2 O e. o = 4
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- Suppose that firms face the following production function: Q ==Inl +InK. What is the degree of elasticity of substitution? O 2/3 1/3 01 O infinityHomework 2.1 Suppose a business manager of the factory wants to assess in terms of elasticity of demand, whetherthe products that his business is producing are complement goods or substitute goods inconsumption. So please explain which are the factors need to consider the long-run average cost curve in terms of usage of input?Suppose Mr. Saad is a producer of Lola Loo chocolate, following is the information available of his production plant. Quantity of Labour (L) Quantity of 1 2 3 4 5 Capital (K) 10 15 25 100 50 20 30 40 50 75 50 75 100 125 150200250 300 75 90 105 120 2 30 50 62 15 If K and Lare imperfect substitutes and complements from the information above draw at least three isoquant (map) and identify the level of production. H73 4
- Find the elasticity of scale and the elasticity of substitution for the CES production function (x1; x2) = (x1rho + x2tho 1/P, where 0 * p > !!!Question Establish input demand function in case of multiple variable inputsWhat is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = 1 (b) o = -1 (c) o = 1 (d) σ = 3 2
- Q5 A firm's production function is Q is equal to 5L2Ka) Find out the MPL and MPb) Does this production function exhibit constant, increasing, or decreasingreturns to scale?c) What is the marginal rate of technical substitution of L for K for thisproduction function Q6.Suppose the firm sells its output according to the following demand scheduleMarginalTotal Product Total Revenue eLabor Product Price Revenue Product$3.50192c2.80182.30291.80391.65471.5021.4053Fill in the remaining two columns of the table. How many workers wilhired at a wage of $72Suppose that firms face the following production function: Q = L5 + K1/5. What is the degree of elasticity of substitution? infinity 5/4 O 1/5What is the elasticity of substitution for the production function f(K, L) = K 3/4 LA? O a. o = O b. G = O c. o = 1 O d. o = 3 Clear my choice Suppose a company has the following contingent demands /c = 4q and k = 2g. Which of the following statements is true? The marginal cost function is equal to the average cost function. O b. The marginal cost function is smaller than the average cost function. O c. The marginal cost function is greater than the average cost function. O d. The marginal cost function is twice as large as the average cost function. Clear my choice
- A company has the following production function for its product, f(k, I) = k"/2/1/2. It faces input prices v = 5 for capital and w = 20 for labor. How much does the firm use of each input if it wants to produce 10 units of its product? O a. I= 4, k = 25 O b. / = 5, k = 20 O c. 1= 20, k = 5 O d. 1= 25, k = 4 Clear my choice Suppose the market demand for a good is Qº = 2000 – 8p and market supply is QS = 5p + 700. There are 10 %3D firms with exactly the same cost function. How much does each firm produce? O a. 100 O b. 120 O c. 140 O d. 200 Clear my choiceSuppose a production function for a firm takes the following algebraic form: Q = 4KL - (0.2)L", where Q is the output of sweaters per day. Now suppose the firm is operating with 12 units of capital (K = 12) and 11 units of labour (L = 11). What is the output of sweaters? ign O A. 108 sweaters per day Hot O B. 467 sweaters per day OC. 459 sweaters per day ke a O D. 526 sweaters per day O E. 504 sweaters per day Clear all Check answer Etext pages Grapher Ask my instructor Review Resume MacBook Pro * & # $ % @ 7 8 1 2 3 4 Y Q W E J K A S D F M Z C V この つ エ くOASAP