Consider a firm with technology given by the production function y=x}/227/2 The firm can by factors...
Consider a firm with technology given by the production function y=K1/2 [1/2 The firm can by factors from competitive markets at prices r = 27 and w=3. The firm is targeting an output level of y* = 18. Calculate the firm's total cost.
Wiring Diagram O M Omall YouTube Maps Tactical Carbine Shopping Cart - C. D Question 3 1 pts Consider a firm with technology given by the production function y = k05215 The firm can by factors from competitive markets at prices r = 2 and 6 = 24. The firm is targeting an output level of y = 8. Calculate the firm's total cost. Question 4 1 pts D Question 4 1 pts Consider a firm with technology given by...
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...
Consider a two input firm which faces an aggregate technology for perfect compliments of y=min(3x1,x2). a. Plot isoquants for y=3,6 and 9 b. What are the returns of scale for this production function? c. For all possible prices on output, p, and on inputs, w1 and w2, are their price combinations for which a profit maximizing firm would not be able to select a price maximizing quantity (or at least one greater than 0)? Give a restriction on prices such...
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...
Suppose that a firm has the production function (1) Draw an isoquant for f(x1,x2) = 10. (5 points) (w1, w2) respec- (2) Suppose that the price of product is p, and that the prices of factors are tively. Find the factor demand function ri(w, w2, p), x1(w1, w2, P), the supply function y(w1, W2, P), and the profit function T(w1, w2, p). (10 points) Suppose that a firm has the production function (1) Draw an isoquant for f(x1,x2) = 10....
2. Consider a firm with technology that can be represented by the following production function: Input 1 costs wi >0 per unit and input 2 costs w2 >0 per unit. (a) Draw the isoquant associated with an output of 4. Make sure to label any inter- cepts and slopes. (b) Find the firm's long-run cost function.
Problem 2: A firm has the following production function: f(x1,x2) = x1 + x2 A) Does this firm's technology exhibit constant, increasing, or decreasing returns to scale? B) Suppose the firm wants to produce exactly y units and that input 1 costs $w1 per unit and input 2 costs $w2 per unit. What are the firm's conditional input demand functions? C) Write down the formula for the firm's total cost function as a function of w1, W2, and y.
1. Consider the production function f(x1, x2) = 4x 11/2 x 21/3 . What is the returns to scale? Show your work. 2. What is the TRS for the above production function? 3. What is the optimal level of output that maximizes profit given the output and input prices respectively as p, w1, w2?
A firm has the production function y= f(x1,x2)= 0.25x11/2 x21/2 . Input prices are w1=$4 and w2= $16 a) Use the technical rate of substitution, the input price rate, and the production function to compute the conditionial input demand fucntion x1(y) and x2(y). b) Compute the firm's long run cost function c(y).