An input demand curve represents

A firm’s production function is given by Q = K2L.  The marginal products of labor and capital are, respectively, MPL = K2 and MPK = 2KL.  Further, the wage rate is w = $10 and the rental rate of capital is r = $20. Suppose that the firm wants to produce 27,000 units of output in the most efficient way possible.  How much does the firm spend?

A firm has a Cobb-Douglas production function for its inputs of capital and labor.  The firm is currently paying $10 per labor hour and $5 per machine hour.  The firm is currently at an efficient production level, employing an equal number of machines and workers.  What can we infer about the marginal productivities of capital and labor at this point?

If x is an inferior good and the price of x falls

When a production function can be expressed as Q = min{aK, bL}, the relationship between capital and labor in the production function is that

L Q 0 0 1 20 2 50 3 90 4 125 5 140 6 150 Average productivity is maximized with the ____________ worker.  

When average cost is “u-shaped” (neither always rising or always falling), the marginal cost curve will

Suppose that a firm has a Cobb-Douglas production function for its inputs of capital and labor.  The firm is currently paying $10 per labor hour and $5 per machine hour.  The firm is currently at an efficient production level, employing an equal number of machines and workers.  Suppose the cost of labor were to double and the cost of capital were to fall by half.  If the firm wanted to produce the previous level of output for the previous cost, the firm would hire

The type of elasticity of demand that is most commonly positively valued but that can be negative at times is called

Let U(x,y) = with MUx =  and MUy =  .  Let I = $100, Px = $25 and Py = $10 be the initial set of prices and income.  Now, let Px fall to $10.  What is the approximate compensating variation for this change in prices?