64 634
Assignments Done
99,1%
Successfully Done
In September 2018

Answer to Question #71252 in Microeconomics for savuth

Question #71252
The production function for superlite sailboats, Inc., is Q=20K^0.5 L^0.5 with marginal product functions MPk=10*L^0.5/K^0.5 and MPL=10*L^0.5/K^0.5.
a. If the price of capital is $5 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 no, 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?
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions