A competitive firm uses a single input x to produce its output y. The firm’s production...
A competitive firm uses a single input x to produce its output y. The firm’s production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm’s output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?
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A competitive firm uses a single input x to produce its output
y. The firm’s production...
A perfectly competitive firm uses a single input (labor) to produce a good according to a...
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
A firm uses two inputs x1 and x2 to produce output y. The production function is...
A firm uses two inputs x1 and x2 to produce
output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
4. Suppose a firm uses only one input (L) to produce output y, with the production...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from the production function y=x"X, where a >0 and B>0. The competitive input prices of x, and x, are given respectively as w, and wz. a) Find the firm's demand functions for inputs x, and xz. b) Find the firm's total cost, average cost, and marginal cost functions. c) Show that if a +B>1 then average cost is always greater than marginal cost.
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The...
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for labor is wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/OL>0, 62f/8K2, 82f/8L2 <0, and 82f/8KOL = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The...
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for laboris Wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/8L >0, 82f/8K2, 82f/8L2 <0, and 82f/8K6L = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity...
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity according to a production function Q(L)4VL, where L is the amount of labor it uses. The commodity sells for $100 per unit. The input costs $50 per unit. Write down a function that states the firm's profit as a function of the amount of input. b. What is the profit-maximizing amount of input? What is the profit- maximizing amount of output? How much profit...
asput. A firm has the following production function. y=f(x) where y is the output and is...
asput. A firm has the following production function. y=f(x) where y is the output and is the input, if the price of y is 521 unit and the price of x is 56/ unit, complete the following table and plot output, AP. and MP on graph paper and determine the optimum level of the input x that should be used to maximize profit, given Fixed Costs = 5100. - INPUT ----0 - -TR.. .TC__ -11. 1 OUTPUT - AP- -...
A profit-Maximising competitive firm uses Just one input, ac. It's production function is g = 40012...
A profit-Maximising competitive firm uses Just one input, ac. It's production function is g = 40012 The price of output is t12 and the factor price is t3 al. What is the profit-maximising quantity of the input? b) What is the profit-Maximising quantity of output ? c) what is the maximum profit achieved
Hello below is the question , Many thanks for your help :) A competitive firm uses...
Hello below is the question , Many thanks for your help :) A competitive firm uses two inputs, capital (?) and labour (?), to produce one output, (?). The price of capital, ??, is $1 per unit and the price of labor, ??, is $1 per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is ?(?,?)=3?0.25?0.25. The maximum amount of output produced for a given amount of inputs...
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
A firm uses two inputs x1 and x2 to produce
output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from the production function y=x"X, where a >0 and B>0. The competitive input prices of x, and x, are given respectively as w, and wz. a) Find the firm's demand functions for inputs x, and xz. b) Find the firm's total cost, average cost, and marginal cost functions. c) Show that if a +B>1 then average cost is always greater than marginal cost.
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for labor is wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/OL>0, 62f/8K2, 82f/8L2 <0, and 82f/8KOL = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for laboris Wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/8L >0, 82f/8K2, 82f/8L2 <0, and 82f/8K6L = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity according to a production function Q(L)4VL, where L is the amount of labor it uses. The commodity sells for $100 per unit. The input costs $50 per unit. Write down a function that states the firm's profit as a function of the amount of input. b. What is the profit-maximizing amount of input? What is the profit- maximizing amount of output? How much profit...
asput. A firm has the following production function. y=f(x) where y is the output and is the input, if the price of y is 521 unit and the price of x is 56/ unit, complete the following table and plot output, AP. and MP on graph paper and determine the optimum level of the input x that should be used to maximize profit, given Fixed Costs = 5100. - INPUT ----0 - -TR.. .TC__ -11. 1 OUTPUT - AP- -...
A profit-Maximising competitive firm uses Just one input, ac. It's production function is g = 40012 The price of output is t12 and the factor price is t3 al. What is the profit-maximising quantity of the input? b) What is the profit-Maximising quantity of output ? c) what is the maximum profit achieved
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