microeconomics
Consider a farmer who produces cabbages using tractors and labor inputs. Cabbages are produced using the production function given by Q = x1^ 0.5 x2^ 0.5 , where Q is output, x1 is labor input and x2 is tractor input. a) Define the farmer’s long-run profit maximization problem.
b) It takes three months for new tractors to arrive while labor inputs can be changed within a day. Define and solve the profit maximization problem of the farmer for the next month if he has 4 tractors. Assume that each tractor cost nothing due to a government subsidy programme, while each unit of labor costs 5 TL and each unit of cabbage can be sold for 10 TL.
c) How much profit does the farmer make?
d) Show the short-run equilibrium for the amount of labor inputs on the same graph by drawing a representative production function and isoprofit curve. Write down the slope of the isoprofit line.
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Can you please show your work for the derivative part? It has been a while. Thank...
Can you please show your work
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1. Consider a firm which produces according to the following production function by using labor and capital: f(1,k) = klid (e) Suppose the wage rate of labor is 2 TL, the rental rate of capital is 2 TL and fixed capital input, k, is 2 units. What amount of output minimizes short-run average cost? What is the minimum possible short-run average cost? (f) Find short-run firm supply as a function of input prices, w and v, and output price, p....
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...
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Can you please show your work
for the derivative part? It has been a while. Thank you :)
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