Question 1: An uprising entrepreneur phones afin de produce wilt. This firm hasa production faction given by In particular, this timha K-25. This quants are fixed in the stren. Let w dnete the real rate for at dette er for kundan boh VS1 If the entrepreneur wishes to minimeren totala fide production, much lahor should be employed Gives the firm is maimuring the cout, calculate the tim's short antal average and mwpinal controlWhat is the marginal cost of the 100 widget Of 135 g of the 200 widget? What ratio ho the preplay Labour and capital in the long raCaldate the long run total, werage, and marginal cod curves fee Wilget produce 4. How would you mwetto parte changer lesbied diminishing to tale! Questo 2: A fim pradacie hockey stickshapadation function by In the shorts the fem samount of capital cuperent fined at 1-25. The rentale fark -the Caleate the firm's cal function cost factice and marginal com function in the short run h) What we the SC. SAC SMC for the fim if a produce hockey sticker Shockey 100 hakk? (c) Graph the SAC on SMC curves for the indicate de points found in part (d) Where does the SMC une me the SAC curve Esplain why the Secure will always meet the SNC at its lowest point Quest 3 The boiler in the heating plants College is designs hun either fudor coal Suppose that one son of coal produces as many as 100 gallons of flool, Draw a typical iguan for BTU production What is the city of sustin between the land coal Suppose that the od 5.00 per gallon and clopor konDr de pat panic at the diagram and the the marginal and weage couture (Repeating that the price of cool has need to 120 per Questions thiefly explain why you think the following wew. falar certain For fixed proportion sechnology. ms cannot be stated for each other in pro Contingent demand functioning of the quantity being produce for all productie puts can be derved from the gat lantion cor any gaput levde a fimm kung-run tools, always be than equal to eshot-funco d. Technical program will dina finestre action and come more capital and lahar to be hired The long run average co made up of the minimum ponto ruswap Amignment 16A Question 1: An enterprising entrepreneur purchases a firm to produce widgets. This firm hasa production finetion given by TK In particular, this firm has K-25. This quantities are fised in the short run. Let w denote the Tental rate for Land denote the rental rate for Kandasume both w-v-SI *. If the entrepreneur wishes to minimize short-run total costs of widget production, how much labour should be employed 1. Given the firm is mnimizing the cast, calculate the tim's short-run total, average and marginal cost curves. What is the marginal cost of the 100 widget? Of the 125 widget? of the 200" widget? c. What ratio should the entrepreneur employ labour and capital in the long run? Calculate the long run total, average, and marginal cost curves for widget production d. How would you answer to parte change if firm exhibited diminishing return to scale? Question 2: A fimm producing hockey sticks has a production function given by In the short run, the firm's amount of capital equipment is fixed at k-25. The rental rate for kis v S1 and the wage rate for lis w $4. (a) Calculate the firm's total cost function, average cost function and marginal cost function in the short run (b) What are the SC, SAC and SMC for the firm if it prodaces 25 hockey sticks? So hockey sticks? 100 hockey sticks? (C) Graph the SAC and SMC curves for the firm Indicate the points found in part (b) (d) Where does the SMC curve intersect the SAC curve? Explain why the SMC curve will always intersect the SAC at its lowest point. Question 3: The boiler in the heating plant tactic College is designed to hum either fuel oil or coal Suppose that one ton of coal, C, produces as many BTUs as 100 gallons of fuel oil, F. (a) Draw a typical isoquant for BTU production (b) What is the elasticity of substitution between fuel oil and coal? (c) Suppose that fuel oil is $1.00 per gallon and coal is 50 per ton. Draw the output expansion path on the diagram and describe the marginal and average cost curves nah Economics.pdf ECO 501 Assignment #6-4 Question 1: An enterprising entrepreneur purchases a firm to produce widgets. This firm has a production fetion given by KL In particular, this form has K-25. This quantities are fixed in the short run. Let w denote the rental rate for Land denote the rental rate for K, and assume both w -v - Si. # If the entrepreneur wishes to minimize short-run total costs of widget production, how much labour should be employed? b. Given the firm is minimizing the cost, calculate the fim's short-run total, average and marginal cost curves. What is the marginal cost of the 100 widget? Of the 125 widget? Or the 200 widget? c. What ratio should the entrepreneur employ labour and capital in the long run? Calculate the long run total, average, and marginal cost curves for widget production d. How would you answer to parte change if firm exhibited diminishing return to scale? Question 2: A firm producing hockey sticks has a production function given by In the short run, the firm's amount of capital equipment is fixed at -25. The rental rate for kis VS1 and the wage rate for lis w $4. (a) Calculate the firm's total cost function, average cost function and marginal cost function in the short run (b) What are the SC, SAC and SMC for the fim if it produces 25 hockey sticks? 56 hockey sticks? 100 hockey sticks? (c) Graph the SAC and SMC curves for the firm. Indicate the points found in part (b). (4) Where does the SMC curve intersect the SAC curve? Explain why the SMC curve will always intersect the SAC at its lowest point Question 3: The boiler in the heating plant at arctic College is designed to bum either fuel oil or coal. Suppose that one ton of coal. C. produces as many BTUs as 100 gallons of fuel oil. F