Marlon produces marbles using one input, glass with a production function y = 4G0.5. Glass costs...
Marlon produces marbles using one input, glass with a production function y = 4G0.5. Glass costs $50 per pound, and marbles sell for $100 each.
a) What's his profit maximizing production plan? What is his profit?
b) Suppose the city decides to tax his marbles at $20 per marble, but there is now a subsidy on glass at $10 per pound. What's his new profit maximizing production plan?
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Marlon produces marbles using one input, glass with a production
function y = 4G0.5. Glass costs...
A producer produces good y using inputs x1 and x2 according to the production function y...
A producer produces good y using inputs x1 and x2 according to
the production function y = xα1xβ2 where α+β < 1. The factor
prices are w1 and w2 (for input 1 and 2). The producer can sell as
much as he wants at unit price p.
A producer produces good y using inputs X1 and 22 according to the production function y = xqx, where a + B < 1. The factor prices are wi and W2 (for input...
Suppose that Jennifer produces good y by using input xi and x2. The production function which...
Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x3 The cost for every unit of xı is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express X1/X2 as a function of w2/w1.
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...
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input...
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input r>0 by way of the production function () , where f(x)竺2x2 . The firm's output sells at the price p >0 while the input is purchased at the price wo (a) (b) (c) Determine the lalue of the input that solves the FONC, and denote it by x (p,w). Is Set up the profit maximization problem. Derive the FONC and SOSC. x(p,w) unique? Explain....
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):=...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
7. (5 points) There are two firms X and Y. Firm X produces goods x and Firm Y produces goods y. T...
7. (5 points) There are two firms X and Y. Firm X produces goods x and Firm Y produces goods y. The unit price of x is $1 and the unit price of y is $2. Labor is the only input of production. The wage rate for workers in Firm X is $20 while the wage rate for workers in Firm Y is $15. The production function of the paper mill is However, since the paper mill drains chemical waste...
9) A firm has the long run production function y 4x1/4x24 and sells output at a...
9) A firm has the long run production function y 4x1/4x24 and sells output at a fixed price of S6 per unit. The cost of one unit of z is 1 dollar and unit two costs 3 dollars per unit. What is the short run profit maximizing value of if input two is fixed at 7 units in the short run? (pick the closest) a.5 units 10 units c.20 units d.30 units e.40 units 10) The profit maximizing level of...
Question 1: Colin's utility function for goods X and Y is represented by U(XY) = X0.5Y0.5...
Question 1: Colin's utility function for goods X and Y is represented by U(XY) = X0.5Y0.5 . Assume his income is $1000 and the prices of X and Y are $50 and S100, respectively. a. Write an expression for Colin's budget constraint. b. Calculate the optimal quantities of X and Y that Colin should choose, given his budget constraint. Graph your answer. Suppose that government subsidy program lowers the price of Y from $100 per unit to $ 50 per...
1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40...
1. Consumer’s utility function is: U (X,Y) = 10X + Y. Consumer’s income M is 40 euros, the price per unit of good X (i.e. Px ) is 5 euros and the price per unit of good Y (i.e. Py) is 1 euro. a) What is the marginal utility of good X (MUx) for the consumer? ( Answer: MUx = 10) b) What is the marginal utility of good Y (MUy) for the consumer? ( Answer: MUy = 1) c)...
A producer produces good y using inputs x1 and x2 according to
the production function y = xα1xβ2 where α+β < 1. The factor
prices are w1 and w2 (for input 1 and 2). The producer can sell as
much as he wants at unit price p.
A producer produces good y using inputs X1 and 22 according to the production function y = xqx, where a + B < 1. The factor prices are wi and W2 (for input...
Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x3 The cost for every unit of xı is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express X1/X2 as a function of w2/w1.
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...
A price-taking and profit-maximizing firm produces one output at the rate y> 0 using one input r>0 by way of the production function () , where f(x)竺2x2 . The firm's output sells at the price p >0 while the input is purchased at the price wo (a) (b) (c) Determine the lalue of the input that solves the FONC, and denote it by x (p,w). Is Set up the profit maximization problem. Derive the FONC and SOSC. x(p,w) unique? Explain....
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
Conditional/Unconditional demand for an input factor A firm produces an output using production function Q = F(L, K):= L1/2K1/3. The price of the output is $3, and the input factors are priced at pL 1 and pK-6 (a) Find the cost function (as a function of output Q). Then find the optimal amount of inputs i.e., L and K) to maximize the profit (b) Suppose w changes. F'ind the conditional labor deand funtionL.Px G) whene function L(PL.PK for Q is...
7. (5 points) There are two firms X and Y. Firm X produces goods x and Firm Y produces goods y. The unit price of x is $1 and the unit price of y is $2. Labor is the only input of production. The wage rate for workers in Firm X is $20 while the wage rate for workers in Firm Y is $15. The production function of the paper mill is However, since the paper mill drains chemical waste...
9) A firm has the long run production function y 4x1/4x24 and sells output at a fixed price of S6 per unit. The cost of one unit of z is 1 dollar and unit two costs 3 dollars per unit. What is the short run profit maximizing value of if input two is fixed at 7 units in the short run? (pick the closest) a.5 units 10 units c.20 units d.30 units e.40 units 10) The profit maximizing level of...
Question 1: Colin's utility function for goods X and Y is represented by U(XY) = X0.5Y0.5 . Assume his income is $1000 and the prices of X and Y are $50 and S100, respectively. a. Write an expression for Colin's budget constraint. b. Calculate the optimal quantities of X and Y that Colin should choose, given his budget constraint. Graph your answer. Suppose that government subsidy program lowers the price of Y from $100 per unit to $ 50 per...
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