Question

A) Suppose there are two goods beverage and pizza and two inputs land, T, and labor, L. Given atb=4999, atp=953, alb=2514, alp=1991,T=5750, and L=5026. What is the amount of pizza at the point of intersection between land and labor constraints. (Answer should have two decimal places).

B) Suppose there are two goods, pizza and beverage. Suppose alp=5191, atp=977, alb=2544, atb=1975, Pp=10800, and Pb=10400. What is the equilibrium wage?

Answer 1