Find optimal units of labour and capital to maximize profit, Microeconomics

+44 141 628 6080
[email protected]

Find optimal units of labour and capital to maximize profit

Suppose production function, Y = (2L(3/4))(4K(1/4)). Cost function, C = wL+rK (where w=wage rate & r=cost of capital).

i) Using Lagrangian method, find the Least Cost of production. First, define the Objective function and Constraint. Second, find the solution for optimal units of labour and capital, L* and K*. Note: during solution, do not use values given in (ii)

ii) If w = $5/hr; capital cost, r = $10/hr, what is the cost of producing Y = 200.

iii) For the same question, find the optimal units of Labour (L*) and Capital (K*) that will maximize Profit.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find optimal units of labour and capital to maximize profit

Reference No:- TGS039818

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Microeconomics

Q : Prepare stockholders'' equity section of the balance sheet

Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)

Q : Determine the amount of net capital loss

Determine the amount of net capital loss carried back to each preceding tax year and the amount of capital loss, if any, available as a carryforward.

Q : Capital gain net income problem

Evans Corporation has a $15,000 net capital loss in 2009. The corporation reported the following capital gain net income during the past three years. Identify which of the following statements is true. YearCapital Gain 2006$10,000 2007 11,000 2008

Q : Prepare a schedule to show the cash receipts from sales

NOTE: Each month there is a 10% sales return on credit sales. The credit sales return does not affect the 25% collected. Prepare a schedule to show the cash receipts from sales and collections for the month of 2007.

Q : Find optimal units of labour and capital to maximize profit

find the solution for optimal units of labour and capital, L* and K*. Note: during solution, do not use values. For the same question, find the optimal units of Labour (L*) and Capital (K*) that will maximize Profit.

Q : Taxable income if gross profits on sales given

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is :

Q : Annualized return to the speculator

Suppose speculator liquidated the contract one month later, when the contract closed at $0.8600. If the initial margin for each Euro contract is USD2,000, what is the annualized return to the speculator in this contract (NOTE:calculate simple annu

Q : Information for the current tax year

Jackel, Inc. has the following information for the current tax year. Gross sales $350,000 Cost of goods sold 50,000 Dividends received (10%) 40,000 Operating expenses 30,000 Charitable contributions 45,000 What is Jackel's charitable contribution

Q : Draw consumer-s budget line in absence of food stamp program

Draw the consumer's budget line in the absence of the Food Stamp Program. What is the market rate of substitution between food and "all other goods"?

1939689

Questions
Asked

3,689

Active Tutors

1419337

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find optimal units of labour and capital to maximize profit

Reference No:- TGS039818

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Prepare stockholders'' equity section of the balance sheet

Q : Determine the amount of net capital loss

Q : Capital gain net income problem

Q : Prepare a schedule to show the cash receipts from sales

Q : Find optimal units of labour and capital to maximize profit

Q : Taxable income if gross profits on sales given

Q : Annualized return to the speculator

Q : Information for the current tax year

Q : Draw consumer-s budget line in absence of food stamp program

How do you define being an adult

Problem concerning consensual sexual relationship

Identify one antecedent, one behaviour, and one consequence

Discuss social worker working with foster children

Outline a social issue that is important to you

Describe some of your personality traits

Problem regarding the america youth and social media

Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find optimal units of labour and capital to maximize profit

Reference No:- TGS039818

Recent Questions Asked Microeconomics

Q : Prepare stockholders'' equity section of the balance sheet

Q : Determine the amount of net capital loss

Q : Capital gain net income problem

Q : Prepare a schedule to show the cash receipts from sales

Q : Find optimal units of labour and capital to maximize profit

Q : Taxable income if gross profits on sales given

Q : Annualized return to the speculator

Q : Information for the current tax year

Q : Draw consumer-s budget line in absence of food stamp program

Asked Questions