(b) A domestic programmer can be hired for £100,000 per year. An international programmer can be hired for £60,000 per year. On the same graph, show the different combinations of domestic and international programmers the firm can hire for total costs of £600,000; £500,000; and £400,000. How many of each programmer are hired, and at what total cost?
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- What is the difference between a fixed input and a variable input?Suppose college graduates earn $25 an hour and high school graduates earn $5 an hour. Suppose too that the marginal product of college graduates at Johnson Tools is 8 hammers per hour, while the marginal product of high school graduates is 4 hammers per hour (regardless of the number of each type of worker employed). a. What is the least-cost production method for producing 100 hammers in an eight-hour day? O Hire one-third college graduates and two-thirds high school graduates. O Hire two-thirds college graduates and one-third high school graduates. Hire only high school graduates. Hire half college graduates and half high school graduates. O Hire only college graduates. b. What if the marginal product of high school graduates was instead 2? O Hire half college graduates and half high school graduates. Hire only high school graduates. O Hire two-thirds college graduates and one-third high school graduates. O Hire only college graduates. O Hire one-third college graduates and…Suppose Charles owns a lawn mowing company, Assume that without workers, no yards are mowed. When he hires one worker, he is able to mow 3 yards per day. With two workers, he can mow 7 yards per day, and with three workers, he can mow 12 yards per day The marginal product of the first worker is yards per day The marginal product of the second worker yards per day.
- If capital and labour are perfect complements then the marginal products of capital and labour are undefined A True Faise Question 16 A firm uses 10 units of labour and 20 units of capital to produce 10 units of output. The marginal product of labour is 0.5. If there are constant returns to scale the marginal product of labour must be 0.25 True B False Question 17 Afirm uses 10 units of labour and 30 units of capital to produce 10 units of output. The marginal product of labour is 05. If there are constant returns to scale the marginal product of labout must be 0.25 A True FalseA firm can use three different production technologies, with capital and labour requirements at each level of output as follows: Technology 1 Technology 2 Technology 3 Daily Output K L K L K L 100 3 7 4 5 5 4 150 3 10 4 7 5 5 200 4 11 5 8 6 6 250 5 13 6 10 7 8 a. Suppose the firm is operating in a high-wage country, where capital cost is $100 per unit per day and labour cost is $80 per worker per day. For each level of output, which technology is the cheapest? Now suppose the firm is operating in a low-wage country, where capital cost is $100 per unit per day but labour cost is only $40 per unit per day. For each level of output, which technology is the cheapest? Suppose the firm moves from a high-wage to a low-wage country but its level of output remains constant at 200 units per day. How will its total employment change?In the Cost Minimization Problem, the isoquant curve for an output level equal to the output quota? Illustrates the cost of labor and capital a firm pays to produce a level of output in excess of an output quota. Illustrates all combinations of labor and capital that a firm cannot afford. Illustrates all combinations of labor and capital that a firm can afford. O Illustrates all combinations of labor and capital that a firm can use to produce a level of output equal to the output quota.
- A software firm has only two inputs to production: domestic programmers based in the firm’s U.K. office and international programmers working from home in low-cost countries.The two types of programmers are perfect substitutes but domestic programmers are more productive due to better communication in the office. The production function is:S = 2D + IWhere S is the amount of software written, D is the number of domestic programmers and I is the number of international programmers. Programmers can work part-time, so hiring 0.3 of a programmer would be possible. (c) The government is concerned about diversity and writes a law saying that at least two workers in any firm must be domestic, and that at least two workers must be international. Show the effect of this law on the firm’s isoquant, the number of each type of worker hired, and total costs.A software firm has only two inputs to production: domestic programmers based in the firm’s U.K. office and international programmers working from home in low-cost countries.The two types of programmers are perfect substitutes but domestic programmers are more productive due to better communication in the office. The production function is:S = 2D + IWhere S is the amount of software written, D is the number of domestic programmers and I is the number of international programmers. Programmers can work part-time, so hiring 0.3 of a programmer would be possible.(a) The firm must produce 10 pieces of software this year. Show the firm’s isoquant in a suitably labelled graph. Put “domestic programmers” on the vertical axis and “international programmers” on the horizontal axis. Label each axis from 0 to 10.Consider two farms, A and B. The input use and output are given in the following table. The wage = $80 per day and rental price of the machines = $100 per day Farm Labour(L) Physical capital(K) Output(Q) Q/L Q/K TFP A 2 2 200 ? ? ? B 4 1 200 ? ? ? Which farm is more productive according to the productivity measures? Which of the three measures is the most informative measure of agricultural productivity? Why?
- USE R LANGUAGE TO SOLVE THE equation The output of a production process, Q is given by the function2K^(-3)L^(5/2)/2K log4 6L^2where K and L denote capital and Inbour. Calculate the output when the capital and labour are 10 and 20 units, respectively.Please only do 4 and 5 not 1 2 or 3 Suppose a firm’s production function is K^1/3 L^2/3 Mpk= L^2/3 / 3K^2/3 MpL=2K^1/3 / 3L^1/3 The rental rate of capital is $52, and the wage rate is $13. What is the cost minimizing capital to labor ratio? How many units of capital and labor should the firm use to produce 1200 units of output How much would it cost the firm to produce 1200 units? What is the short run and long run total costs of decreasing output to 1000 units? Assuming relocation is costless, should the firm relocate to a new location where w=15, r=40?3.5 A firm can use three different production technologies, with capital and labor requirements at each level of output as follows: Daily Output 100 150 200 250 Technology 1 K 4 5 6 7 L 6 9 12 15 Technology 2 Technology 3 K 2 3 L 8 10 14 18 K 5780 L 10 3582 6 a. Suppose the firm is operating in a high-wage country, where capital cost is $150 per unit per day and labor cost is $100 per worker per day. For each level of output, which technology is cheapest? 12 b. Now suppose the firm is operating in a low-wage country, where capital cost is $150 per unit per day but labor cost is only $60 per unit per day. For each level of output, which technology is cheapest? c. Suppose the firm moves from a low-wage to a high-wage country but its level of output remains constant at 100 units per day. How will its total employment change?