A Chinese high technology manufacturing firm has a production function of q = 10L 0.28 K 0.64
Question:
A Chinese high technology manufacturing firm has a production function of q = 10L0.28K0.64 (based on Zhang et al., 2012). It faces factor prices of w = 10 and r = 20. What are its short-run marginal cost and average variable cost curves?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
Let K be fixed in the short run First use the product...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
A Chinese high technology firm has a production function of q = 10L 0.28 K 0.66 (Zhang et al., 2012). It faces factor prices of w = 10 and r = 20. What are its short-run marginal and average variable...
-
A firm has a Cobb- Douglas production function, q = ALaK, where a + < 1. On the basis of this information, what properties does its cost function have? For example, a U. S. chemical firm has a...
-
A firm has a production function of Q = 0.25KL0.5, the rental rate of capital is $100, and the wage rate is $25. In the short run, is fixed at 100 units. a. What is the short-run production...
-
Explain and justify what stage current bubble is in ?Analyze the financial markets and contribution of participants that create the bubble? Justify and explain the factors that will cause this bubble...
-
An ice cube is placed on top of an overturned spherical bowl of radius r, as indicated in FIGURE 8-42. If the ice cube slides downward from rest at the top of the bowl, at what angle does it...
-
Cold water enters a steam generator at 20C and leaves as saturated vapor at the boiler pressure. At what pressure will the amount of heat needed to preheat the water to saturation temperature be...
-
What are the advantages and disadvantages of certified environmental product declarations? Assuming that you are the environmental manager of Global Autos, with companies operating in Sweden,...
-
Sally Fleming operates her own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction...
-
Tick the true statements relating to implementing costing strategies: Businesses will assess any action based on the costs involved and therefore a financial assessment is necessary for any...
-
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
-
If the cost function for Johns Shoe Repair is C(q) = 100 + 10q - q 2 + 1/3q 3 , and its marginal cost function is MC = 10 - 2q + q 2 , what is its profit-maximizing condition given that the market...
-
Refer to Section 1.5.6. Using the likelihood function to obtain the information, find the approximate standard error of .
-
If there has been an intragroup sale of inventory within a reporting period, and all of the related inventory has been sold to external parties, which accounts need to be debited and credited as part...
-
a. What are the major sources of revenue for an insurance company? b. How are its profits determined?
-
a. What is a GIC? b. Does a GIC carry a "guarantee" like a government obligation?
-
What are some key differences between a mutual fund and an annuity?
-
Describe the differences and similarities of the conduct of Chairmen Greenspan and Bernanke in managing Fed policy.
-
a. Does the \(\mathrm{SEC}\) regulate all insurance companies? b. If not, who regulates them?
-
Listed here are data for five companies. These data are for the companies 2016 fiscal years. The market price per share is the closing price of the companies stock as of March 24, 2017. Except for...
-
H.J. Heinzs annual dividends were as follows: 1990 ..............$0.540 1991.............. 0.620 1992 .............. 0.700 1993.............. 0.780 1994 .............. 0.860 1995 .............. 0.940...
-
Why must isoquants be thin?
-
Suppose that a firm has a fixed-proportions production function in which 1 unit of output is produced using one worker and 2 units of capital. If the firm has an extra worker and no more capital, it...
-
To produce a recorded CD, q = 1, a firm uses one blank disc, D = 1, and the services of a recording machine, M = 1, for one hour. Draw an isoquant for this production process. Explain the reason for...
-
You are planning to invest in fine wine. Each case costs $100 (at time 0), and you know from experience that the (future) value of a case of wine held fort years is100 * t^(1/2)fort1. (Suppose that...
-
(b) Ntow Ltd prepared the following estimated figures for its Manufacturing Division for the four months ending 31st March 2019: Month Production in units Cost () January 14,000 220,000 February...
-
Suppose you short-sell a $100m 10-year on-the-run par treasury and buy an $100m 10-year off-the-run par treasury to earn the yield spread in late 1997. At the time, the rates on these bonds were...
Study smarter with the SolutionInn App