MPLaborandWage

Comments

Transcription

MPLaborandWage
eStudy.us
MPL MPK

w
r
w
 MC
MPL
• Added Capital (Computer,
Truck, etc.)
• Added Training
w
r

MPL MPK
restating
Suppose your boss gives you a 10% raise for work
well done last year
w 1.1
 MC
MPL
w  1 .1
 MC
MPL  1.1
w 1.1
 MC 
MPL
w 1.1
 MC 
MPL 1.2
Copyright 2010 [email protected], All rights reserved
eStudy.us
Long Run Cost Example
Cobb-Douglas Function
Q  AL K 
Q  4 L.5 K .5
Copyright 2010 [email protected], All rights reserved
eStudy.us
Capital
Long Run Cost Example
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0
17.89
17.44
16.97
16.49
16.00
15.49
14.97
14.42
13.86
13.27
12.65
12.00
11.31
10.58
9.80
8.94
8.00
6.93
5.66
4.00
0.00
1
25.30
24.66
24.00
23.32
22.63
21.91
21.17
20.40
19.60
18.76
17.89
16.97
16.00
14.97
13.86
12.65
11.31
9.80
8.00
5.66
0.00
2
30.98
30.20
29.39
28.57
27.71
26.83
25.92
24.98
24.00
22.98
21.91
20.78
19.60
18.33
16.97
15.49
13.86
12.00
9.80
6.93
0.00
3
35.78
34.87
33.94
32.98
32.00
30.98
29.93
28.84
27.71
26.53
25.30
24.00
22.63
21.17
19.60
17.89
16.00
13.86
11.31
8.00
0.00
4
40.00
38.99
37.95
36.88
35.78
34.64
33.47
32.25
30.98
29.66
28.28
26.83
25.30
23.66
21.91
20.00
17.89
15.49
12.65
8.94
0.00
5
43.82
42.71
41.57
40.40
39.19
37.95
36.66
35.33
33.94
32.50
30.98
29.39
27.71
25.92
24.00
21.91
19.60
16.97
13.86
9.80
0.00
6
47.33
46.13
44.90
43.63
42.33
40.99
39.60
38.16
36.66
35.10
33.47
31.75
29.93
28.00
25.92
23.66
21.17
18.33
14.97
10.58
0.00
7
50.60
49.32
48.00
46.65
45.25
43.82
42.33
40.79
39.19
37.52
35.78
33.94
32.00
29.93
27.71
25.30
22.63
19.60
16.00
11.31
0.00
8
53.67
52.31
50.91
49.48
48.00
46.48
44.90
43.27
41.57
39.80
37.95
36.00
33.94
31.75
29.39
26.83
24.00
20.78
16.97
12.00
0.00
9
56.57
55.14
53.67
52.15
50.60
48.99
47.33
45.61
43.82
41.95
40.00
37.95
35.78
33.47
30.98
28.28
25.30
21.91
17.89
12.65
0.00
10
59.33
57.83
56.28
54.70
53.07
51.38
49.64
47.83
45.96
44.00
41.95
39.80
37.52
35.10
32.50
29.66
26.53
22.98
18.76
13.27
0.00
11
61.97
60.40
58.79
57.13
55.43
53.67
51.85
49.96
48.00
45.96
43.82
41.57
39.19
36.66
33.94
30.98
27.71
24.00
19.60
13.86
0.00
12
64.50
62.86
61.19
59.46
57.69
55.86
53.96
52.00
49.96
47.83
45.61
43.27
40.79
38.16
35.33
32.25
28.84
24.98
20.40
14.42
0.00
13
Labor
Copyright 2010 [email protected], All rights reserved
eStudy.us
Long Run Cost Example (Imbedded Short Run)
K=10
Labor
0
1
2
3
4
5
6
7
8
9
10
11
12
13
TP
0
12.65
17.89
21.91
25.3
28.28
30.98
33.47
35.78
37.95
40
41.95
43.82
45.61
MP
12.65
5.24
4.02
3.39
2.98
2.7
2.49
2.31
2.17
2.05
1.95
1.87
1.79
Copyright 2010 [email protected], All rights reserved
eStudy.us
Capital
Long Run Production Example (Technical Efficiency)
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0
17.89
17.44
16.97
16.49
16.00
15.49
14.97
14.42
13.86
13.27
12.65
12.00
11.31
10.58
9.80
8.94
8.00
6.93
5.66
4.00
0.00
1
25.30
24.66
24.00
23.32
22.63
21.91
21.17
20.40
19.60
18.76
17.89
16.97
16.00
14.97
13.86
12.65
11.31
9.80
8.00
5.66
0.00
2
30.98
30.20
29.39
28.57
27.71
26.83
25.92
24.98
24.00
22.98
21.91
20.78
19.60
18.33
16.97
15.49
13.86
12.00
9.80
6.93
0.00
3
35.78
34.87
33.94
32.98
32.00
30.98
29.93
28.84
27.71
26.53
25.30
24.00
22.63
21.17
19.60
17.89
16.00
13.86
11.31
8.00
0.00
4
40.00
38.99
37.95
36.88
35.78
34.64
33.47
32.25
30.98
29.66
28.28
26.83
25.30
23.66
21.91
20.00
17.89
15.49
12.65
8.94
0.00
5
43.82
42.71
41.57
40.40
39.19
37.95
36.66
35.33
33.94
32.50
30.98
29.39
27.71
25.92
24.00
21.91
19.60
16.97
13.86
9.80
0.00
6
47.33
46.13
44.90
43.63
42.33
40.99
39.60
38.16
36.66
35.10
33.47
31.75
29.93
28.00
25.92
23.66
21.17
18.33
14.97
10.58
0.00
7
50.60
49.32
48.00
46.65
45.25
43.82
42.33
40.79
39.19
37.52
35.78
33.94
32.00
29.93
27.71
25.30
22.63
19.60
16.00
11.31
0.00
8
53.67
52.31
50.91
49.48
48.00
46.48
44.90
43.27
41.57
39.80
37.95
36.00
33.94
31.75
29.39
26.83
24.00
20.78
16.97
12.00
0.00
9
56.57
55.14
53.67
52.15
50.60
48.99
47.33
45.61
43.82
41.95
40.00
37.95
35.78
33.47
30.98
28.28
25.30
21.91
17.89
12.65
0.00
10
59.33
57.83
56.28
54.70
53.07
51.38
49.64
47.83
45.96
44.00
41.95
39.80
37.52
35.10
32.50
29.66
26.53
22.98
18.76
13.27
0.00
11
61.97
60.40
58.79
57.13
55.43
53.67
51.85
49.96
48.00
45.96
43.82
41.57
39.19
36.66
33.94
30.98
27.71
24.00
19.60
13.86
0.00
12
64.50
62.86
61.19
59.46
57.69
55.86
53.96
52.00
49.96
47.83
45.61
43.27
40.79
38.16
35.33
32.25
28.84
24.98
20.40
14.42
0.00
13
Labor
Copyright 2010 [email protected], All rights reserved
eStudy.us
Long Run Cost Example
Cobb-Douglas Function
Q  AL K 
Q  4 L.5 K .5
Q
 2 L.5  MPL
L
w
r

MPL MPK
Q
 2 K .5  MPK
K
If:
W=$9.00
K=$20.00
$9
$20

.5
.5
2L
2K
Copyright 2010 [email protected], All rights reserved
eStudy.us
Long Run Cost Example (CobbDouglasExample.xls)
Labor
w=$9.00
$9
$20

.5
2L
2 K .5
MP
MP/w
Capital
0
r=$12.00
MP
MP/r
0
1
2.0000
$0.2222
1
2.0000
$0.1667
2
1.4142
$0.1571
2
1.4142
$0.1179
Cobb Douglas
Constant
2
3
1.1547
$0.1283
3
1.1547
$0.0962
ExpLabor
0.5
4
1.0000
$0.1111
4
1.0000
$0.0833
ExpCapital
0.5
5
0.8944
$0.0994
5
0.8944
$0.0745
6
0.8165
$0.0907
6
0.8165
$0.0680
7
0.7559
$0.0840
7
0.7559
$0.0630
8
0.7071
$0.0786
8
0.7071
$0.0589
9
0.6667
$0.0741
9
0.6667
$0.0556
10
0.6325
$0.0703
10
0.6325
$0.0527
11
0.6030
$0.0670
11
0.6030
$0.0503
12
0.5774
$0.0642
12
0.5774
$0.0481
13
0.5547
$0.0616
13
0.5547
$0.0462
14
0.5345
$0.0594
14
0.5345
$0.0445
Solution
Labor=
5
7
9
14
Capital=
3
4
5
8
$111.00
$141.00
$222.00
10.58
13.42
21.167
$10.57
$10.59
$10.45
Budget= $81.00
Output=
7.75
MC $10.46
Copyright 2010 [email protected], All rights reserved

Similar documents