Hey, I need help with the questions in the pictures below.
Please help me if you can, i have tried everything, and cannot seem to get the right answer.
i also included the question i got right incase that helps.
Thank you very much and God bless
/learning. Problem PS5.3.1 0/1 point (graded) Kendall Square Inc makes and sells ramen to the large number of students around MIT. Kendall Square Inc uses the production function F (K, L) = (K + 2L) 3 . Input prices are w = 2 and r = 3 for labor and capital respectively. It operates in a perfectly competitive environment facing a price p = $48, and uses an initial amount of capital K = 12. Compute the firm's short-run cost function. To verify that you have the correct short-run cost function, calculate the short-run cost of producing 8 units of ramen. C (8) = 24.6154 X 24.6154 Submit You have used 1 of 2 attempts Problem PS5.3.2 1.0/1.0 point (graded) What is the optimal output level for Kendall Square, Inc in the short run? q"r Dashboard | MITx Micro! Problem Set 5 | Week 5: Compet @ https://learning.edx.org/course/course-v1:MITx+14.100x+172021/block-v1:MITx+14.100x+172021 +type@sequential+block@87baBaeb4aff47dc8 Problem PS5.3.2 1.0/1.0 point (graded) What is the optimal output level for Kendall Square, Inc in the short run? 9* = 4 4 What are its profits? T= 104 104 Submit You have used 1 of 2 attempts Save Problem PS5.3.3 0/1 point (graded)+ type@sequential +block@87baBaeb4aff47dcodle... Problem PS5.3.3 0/1 point (graded) Compute Kendall Square Inc's long-run cost function. To verify that you have the correct long-run cost function, calculate the long-run cost of producing 8 units of ramen. C (8) = 1536 1536 Submit You have used 1 of 2 attempts Save Problem PS5.3.4 0/1 point (graded) Now suppose that, in addition to its existing capital and labor inputs, Kendall Square, Inc must hire a manager for a fixed amount of $54 in order to function properly. Suppose that all firms have the same long-run cost function as Kendall Square, Inc (they must also hire a similar manager), and the market demand is given by D (p) = 9720 . Suppose there are 59 other identical firms in the market (i.e. 60 identical firms in total) and no entry or exit due to government regulation. What is the firm's profit? TTProblem PS5.3.4 0/1 point (graded) Now suppose that, in addition to its existing capital and labor inputs, Kendall Square, Inc must hire a manager for a fixed amount of $54 in order to function properly. Suppose that all firms have the same long-run cost function as Kendall Square, Inc (they must also hire a similar manager), and the market demand is given by P D (p) = 9720 . Suppose there are 59 other identical firms in the market (i.e. 60 identical firms in total) and no entry or exit due to government regulation. What is the firm's profit? T= -78 X -78 Submit You have used 1 of 2 attempts Sa Problem PS5.3.5 0.0/1.0 point (graded) For the rest of the problem, assume that we are in the long run with free entry in the market. What will be the long-run equilibrium price in the market? arch OProblem PS5.3.5 0.0/1.0 point (graded) For the rest of the problem, assume that we are in the long run with free entry in the market. What will be the long-run equilibrium price in the market? p* = 34.47 34.47 At that price, how much will each firm produce? 9* = 3.39 3.39 Submit You have used 1 of 2 attempts Problem PS5.3.6 0/1 point (graded) What is the total number of firms in the market in the long run? re to search O Nquential +block@87baBaeb4aff47 dc8dle... To Problem PS5.3.6 0/1 point (graded) What is the total number of firms in the market in the long run? N = 83 X 83 Submit Save You have used 1 of 2 attempts Problem PS5.3.7 0/2 points (graded) If the manager of Kendall Square, Inc works hard, she can manage to transform the long-run cost function you derived in PS5.3.5 by cutting Kendall Square Inc's variable costs in half. That is, she can halve the part of the long-run cost function unrelated to her fixed wage of $54. Suppose that the rest of the market doesn't change: the other firms can only hire mediocre managers who cannot cut the cost functions and so the long-run market price remains fixed at the same level you calculated in PS5.3.5. What is the new optimal long-run production level for Kendall Square, Inc? 4.27sequential + block@87baBaeb4aff47dc8d1e... Problem PS5.3.7 0/2 points (graded) If the manager of Kendall Square, Inc works hard, she can manage to transform the long-run cost function you derived in PS5.3.5 by cutting Kendall Square Inc's variable costs in half. That is, she can halve the part of the long-run cost function unrelated to her fixed wage of $54. Suppose that the rest of the market doesn't change: the other firms can only hire mediocre managers who cannot cut the cost functions and so the long-run market price remains fixed at the same level you calculated in PS5.3.5. What is the new optimal long-run production level for Kendall Square, Inc? q* = 4.27 4.27 What are the new long-run profits for Kendall Square, Inc? TT = 27.34 27.34 Save Submit You have used 1 of 2 attempts O NSave Problem PS5.3.8 1 point possible (graded) Instead of working hard, Kendall Square Inc's manager can shirk and not improve costs. In order to incentivize her hard work, Kendall Square Inc's shareholders want to give the manager a bonus if they see that variable costs are cut by half. What is the maximum bonus that shareholders would be willing to give? Save Submit You have used 0 of 2 attempts Next >
