For each of the five production functions in the previous problem (only the first four will
be graded), solve for the firms cost function C(q) as a function of output, q. What is the
average cost function for each case? Does each production function exhibit economics of
scale, diseconomies of scale, or constant returns to scale?
For each of the following production functions: (i) Calculate the marginal rate of technical
substitution (if it is defined; if it is not, indicate that that's the case), (ii) Solve for a firm's cost if
the wage is $2, the rental rate on capital is $4, and the firm wishes to produce 81 units of output,
(iii) Solve for the firm's costs if the wage and rental rate are the same as part (ii) but the firm
wishes to produce 243 units of output, (iv) Sketch diagrams that illustrate firm's optimal choices
for parts (ii) and (iii). Draw a diagram for each production function in (a)(d). On each diagram,
draw the relevant isoquants and isocost lines, indicating the optimal input demand for the target
levels of output. 1. f(L,K)=L41Kt 2. f(L,K)=L+3K 3. f(L,K)=9L+K 4. f(L,K)=[min{L,K}] 5.
Ungraded question: f(L,K)=[min{L,K}]21 Question 3 For ench of the five production functions
in the previous problem (only the first four will be graded), solve for the firm's cost function
C(q) as a function of output, q. What is the average cost function for each case? Does each
production function exhibit economics of scale, diseconomies of scale, or constant returns to
scale?.
For each of the five production functions in the previous problem (o.pdf
1. For each of the five production functions in the previous problem (only the first four will
be graded), solve for the firms cost function C(q) as a function of output, q. What is the
average cost function for each case? Does each production function exhibit economics of
scale, diseconomies of scale, or constant returns to scale?
For each of the following production functions: (i) Calculate the marginal rate of technical
substitution (if it is defined; if it is not, indicate that that's the case), (ii) Solve for a firm's cost if
the wage is $2, the rental rate on capital is $4, and the firm wishes to produce 81 units of output,
(iii) Solve for the firm's costs if the wage and rental rate are the same as part (ii) but the firm
wishes to produce 243 units of output, (iv) Sketch diagrams that illustrate firm's optimal choices
for parts (ii) and (iii). Draw a diagram for each production function in (a)(d). On each diagram,
draw the relevant isoquants and isocost lines, indicating the optimal input demand for the target
levels of output. 1. f(L,K)=L41Kt 2. f(L,K)=L+3K 3. f(L,K)=9L+K 4. f(L,K)=[min{L,K}] 5.
Ungraded question: f(L,K)=[min{L,K}]21 Question 3 For ench of the five production functions
in the previous problem (only the first four will be graded), solve for the firm's cost function
C(q) as a function of output, q. What is the average cost function for each case? Does each
production function exhibit economics of scale, diseconomies of scale, or constant returns to
scale?
![For each of the five production functions in the previous problem (only the first four will
be graded), solve for the firms cost function C(q) as a function of output, q. What is the
average cost function for each case? Does each production function exhibit economics of
scale, diseconomies of scale, or constant returns to scale?
For each of the following production functions: (i) Calculate the marginal rate of technical
substitution (if it is defined; if it is not, indicate that that's the case), (ii) Solve for a firm's cost if
the wage is $2, the rental rate on capital is $4, and the firm wishes to produce 81 units of output,
(iii) Solve for the firm's costs if the wage and rental rate are the same as part (ii) but the firm
wishes to produce 243 units of output, (iv) Sketch diagrams that illustrate firm's optimal choices
for parts (ii) and (iii). Draw a diagram for each production function in (a)(d). On each diagram,
draw the relevant isoquants and isocost lines, indicating the optimal input demand for the target
levels of output. 1. f(L,K)=L41Kt 2. f(L,K)=L+3K 3. f(L,K)=9L+K 4. f(L,K)=[min{L,K}] 5.
Ungraded question: f(L,K)=[min{L,K}]21 Question 3 For ench of the five production functions
in the previous problem (only the first four will be graded), solve for the firm's cost function
C(q) as a function of output, q. What is the average cost function for each case? Does each
production function exhibit economics of scale, diseconomies of scale, or constant returns to
scale?](https://image.slidesharecdn.com/foreachofthefiveproductionfunctionsinthepreviousproblemo-230322130302-788fdbbd/85/For-each-of-the-five-production-functions-in-the-previous-problem-o-pdf-1-320.jpg)
