please do five questiions;

1. The given table represents the production function for Red Rum Effects, a company that sells

Halloween props. The numbers in the cells represent the number of customers that can be served

with various combinations of labor and capital.

2. Douglas runs a cupcake business. Each week they need to produce 200 cupcakes to ship to their

!.# !.$

customers. The bakery’s long-run production function is = 10 where *Q *is the number of

cupcakes produced, *K *is the quantity of ovens rented, and *L *is the quantity of labor hired. For this

production function, the = 8 !.#⁄ !.# and the = 2 !.$⁄ !.$, weekly wages are $20

%&

and the weekly rental rate is $100.

3. Jacqueline owns a cattle ranch with the production function = 10 − 1000 where *L *is hired

labor hours. Assume that Jacqueline has no fixed costs

. 4.Suppose a firm has the following production function: *Q *= 2*KL *The marginal product of capital for

this production function is 2*L, and the marginal product of labor is 2K. If capital rents for $100 per
*

*unit per day, labor can be hired for $200 per unit per day, and the firm is minimizing costs.*

*5.*Sally has a business: she sells seashells down by the seashore. The long-run total cost of Sally’s Shells

is = 500 − 10 $ + ‘ where *Q *is measured as dozens of shells. The long-run marginal

cost of Sally’s Shells is given as = 500 − 20 + 3 $

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