Nadine sells user-friendly software. Her firm's production function is f(21,02) = x + 2x2, where x...
George produces computer software (user friendly). His firm's production function is Q = 1K + 2L, where Q is the programs, K is capital employed, and L is the labour used. If George faces factor prices of Pk=1 and Pl =1, the cheapest way to produce Q = 60 is: Part 1: By using how many units of capital? Part 2: By using how many units of labour? If George faces factor prices of Pk=2 and Pl=6, the cheapest way...
3. Irmas Handicrafts produces plastic deer for lawn ornaments. Its hard work, says Irma, but anything to make a buck. Her production function is given by f(21, 12) = (min-1, 2.c2})"/2, where I is the amount of plastic used, 22 is the amount of labor used, and f(21.12) is the number of deer produced. (a) On a graph, draw a production isoquant representing input combinations that will produce 4 deer. Draw another production isoquant representing input combinations that will produce...
10 20 30 40 Labor 21.4 (0) Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production function is f( ) = where output is measured in gallons, T is the number of pounds of lemons he uses, and is the number of labor hours spent squeezing them. Me (a) Does Earl have constant returns to scale, decreasing returns to scale. or increasing returns to scale?_ decreasing TOY Where w, is the cost of...
2) Eor each of the production functions below, find the cost function and conditional factor demands if w1-2 and w2-4. What is the amount of x1 and x2 that minimizes the cost of producing 4 units of output? a. f(x)- XiX22 b. fx)- 2xi+x2 c. f(x)-min(x,2x2) d. u(x)- max(xi,X2)
Problem 1: A firm has the following production function: min{x1, 2x2) f(x,x2)= A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) What is the optimality condition that determines the firm's optimal level of inputs? C) Suppose the firm wants to produce exactly y units and that input 1 costs $w per unit and input 2 costs $w2 per unit. What are the firm's conditional input demand functions? D) Using the information from part D), write...
1. A firm uses labor and machines to produce output according to the production function f(L, M) 2L2 M , where L is the number of units of labor used and M is the number of machines. The cost of labor is $20 per unit and the cost of using a machine is $5. a. Suppose that the firm wants to produce its output in the cheapest possible way. Find the input demand functions for machines and workers. Please show...
Consider a firm which produces a good, y, using two factors of production, xi and x2. The firm's production function is 1/2 1/4 = xi X2. (4) Note that (4) is a special case of the production function in Question 1, in which 1/4 1/2 and B a = Consequently, any properties that the production function in Q1 has been shown to possess, must also be possessed by the production function defined in (4). The firm faces exogenously given factor...
competitive firm is the . 4. the vert Mive is atroduction. The short-run supply curve of ortion of its short-tun marginal cost curve that is competitive firm in the above its average variable cost curve, The o ward sloping an u petitive firm is the portion of its short-run marginal cost curve that supply curve of a Leuward-sloping and lies above its long-run average cost curve. Example: A firm has the long-run cost function cy) = 2y + 200 for...
How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...