Can someone help me with the below questions and how the answers were obtained?
ID: 1107947 • Letter: C
Question
Can someone help me with the below questions and how the answers were obtained?
Question 1
Consider the following information:Q = 51 L + 26 K
PL=13, PK=38, P=49 and C=3,320
What is the profit maximizing amount of capital ?
Correct Answer: 0 ± 0
Question 2
Consider the following information:
Q =min{ 21 L , 49 K}
PL=52, PK=13, P=15 and C=4,625
What is the profit maximizing level of capital ?
Correct Answer: 34.43 ± 5%
Question 3
Consider the following information:
Q = 6 L + 38 K
PL=35, PK=6, P=89 and C=4,681
What is the profit maximizing level of labor ?
Correct Answer: 0 ± 0
Question 4
Consider the following information:
Q = 23 L + 14 K
PL=14, PK=17, P=9 and C =3,823
What is the profit maximizing amount of labor?
Correct Answer: 273.07 ± 5%
Question 5
Consider the following information:
Q = 21 L + 32 K
PL=82, PK=57, P=62, and C=2,848
What is the MRTS?
Correct Answer: -0.66 ± 5%
Question 6
Consider the following information:
Q = 86 L + 75 K
PL=9, PK=9 P=43 C =4,402
What is the slope of the Isocost?
Correct Answer: -1.00 ± 5%
Question 7
Consider the following:
Q =min{ 47 L , 2 K}
PL=62, PK=49, P=98 and C =5,026
What is the amount of maximized profits?
Correct Answer: 14,050.85 ± 5%
Question 8
Consider the following information:
Q = 32 L + 4 K
PL=13, PK=44, P=2 and C =5,584
What is the profit maximizing level of output?
Correct Answer: 13,745.23 ± 5%
Question 9
Consider the following information:
Q = 41 L + 3 K
PL=6, PK=29, P=24 and C =6,549
What is the amount of maximized profits?
Correct Answer: 1,067,487.00 ± 5%
Question 10
Consider the following information:
Q = 15 L + 49 K
PL=42, PK=9, P=47 and C=4,088
What is the slope of the Isoquant?
Correct Answer: -0.31 ± 5%
Question 11
Consider the following information:
Q = 17 L + 37 K
PL=56, PK=7, P=30 and C=4,796
What is the amount of maximized profits?
Correct Answer: 755,712.57 ± 5%
Question 12
Consider the following:
Q =min{ 46 L , 40 K}
PL=24, PK=29, P=76 and C =4,677
What is the profit maximizing level of output?
Correct Answer: 3,751.39 ± 5%
Question 13
Consider the following information:
Q = 11 L + 36 K
PL=38, PK=13, P=47 and C=2,656
What is the profit maximizing level of output?
Correct Answer: 7,355.08 ± 5%
Question 14
Behind the Supply curve
Selected Answer: a. there is a profit maximizing firm
Question 15
The negative of the inputs price ratio is represented by the _________ of an isocost curve.
Selected Answer: b. slope
Question 16
If Q= 10 L + 40 K. Also, PL=1, PK=5 then we know that the
Selected Answer: d. Isoquant is steeper than the Isocost
Question 17
If Q= 20 L + 50 K. Also, PL=3, PK=2, C=1800 then the profit maximizing combination of K and L is
Selected Answer: K=900 and L=0
Question 18
Isocost curves farther away from the origin have __________ costs.
Selected Answer: b. greater
Question 19
MPK/PK < MPL/PL, means that
Correct Answer: the last dollar spent of labor generates more additional output than the last dollar spent on capital
Question 20
MPK/PK > MPL/PL, means that
Selected Answer: Correct Answer: e.
the last dollar spent of capital generates more output than the last dollar spent on labor
Explanation / Answer
(Question 1)
Q = 51L + 26K
Total cost: C = L x PL + K x PK
3,320 = 13L + 38K
For a linear production function, L and K are substitutes. The isoquants are linear and optimal solution is at one of the corner points. Either L or K is produced.
From cost function,
When L = 0, K = 3,320 / 38 = 87.37 and Q = (51 x 0) + (26 x 87.37) = 2,271.62
When K = 0, L = 3,320 / 13 = 255.38 and Q = (51 x 255.38) + (26 x 0) = 13,024.38
Output is higher (therefore, revenue and profit are higher) when L = 255.38 units and K = 0.
K = 0
NOTE: As per Chegg answering guidelines, 1st question is answered.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.