- 7 L 106 04 Cost 7l 14k A Find Mp Mp4 And Ap Of The Production Function Above What Is The Slope Of The Isoq 1 (26.53 KiB) Viewed 32 times
- 7 L 106 04 Cost 7l 14k A Find Mp Mp4 And Ap Of The Production Function Above What Is The Slope Of The Isoq 2 (26.7 KiB) Viewed 32 times
- 7 L 106 04 Cost 7l 14k A Find Mp Mp4 And Ap Of The Production Function Above What Is The Slope Of The Isoq 3 (8.3 KiB) Viewed 32 times
7. /(L) = 106/04 Cost = 7L + 14K a. Find MP, MP4 and AP, of the production function above. What is the slope of the isoquant called? Derive the expression of the slope for the isoquant associated with the given production function. (12 points) Dieta Droduction function was respect to tabat, tecping capital constant = 10.4. KOLL MP of Dicentiate w respect to capital, labor constant 0.6K slope of 15o quant is called marginal not of tochnical sub34990-2 Substitusion M235) chicascs role which one in pursue Substituted for Anciner input while keeping level of Dutput the same) MRTS = MP / MPx 0.4KSLO 32 Stop 0.000
b. What is the slope of the isocost line? (2 points) c. Assume capital is fixed at 10 units in the short-run, how much labor is required to produce 100 units of output? How much will this cost the firm? (7 points) d. What is the "cost minimizing" input requirements of Land k) to produce 100 units of output in the long-run? How much will this cost the firm in total? Sketch a graph that includes the Isocost line (with the intercepts and slope indicated), a representation of the Isoquant and clearly showing the "cost minimizing" input requirements of k and L. (12 points)
e. Is the cost lower or higher in the short run? Is this what you expect? Why? (3 points)