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What is the conditional demand for input 1? Use cost function c(w1;w2; y) = w11/2w21/2y2
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- As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500, the cost for one capital is $250. If the firm has a budget of $7500 to produce, what is the firm's optimum output 250 200 100 150Does the value of λ change if the budget changes from $4600 to $5600?What condition must a Cobb-Douglas production function q = cKαW β satisfy toensure that the marginal increase of production is not affected by the size of thebudget?The cost of renting tuxes for the Choral Society's formal is $21 down, plus $87 per tux. Express the cost C as a function of x, the number of tuxedos rented. C(x) = Use your function to answer the following questions. (a) What is the cost of renting two tuxes? %$4 (b) What is the cost of the second tux? $4 (c) What is the cost of the 4,098th tux? 2$ (d) What is the variable cost? %24 What is the fixed cost? $4 What is the marginal cost? %24
- Consider the production function: Y = 0.75X + 0.0042X2 – 0.000023X3 If input price is 0.15$ and output price is 4$ then at what level of X, profit will be maximum?The variable x represents the number of HDTVs manufactured and sold in a given month. The variable p is the price charged when you sell a TV. A demand curve is given by p = 660-3x. a) Find the x-intercept of this demand curve. Say what it means. Assume you must pay salaries totalling 8000$ in a month. Also, it costs $110 to manufacture one TV. b) Write a formula for your cost function C(x) c) Write a formula for your revenue function R(x) d) The profit function is M(x) = Graph the profit function and using the Maximum program, find the maximum possible profit and fill in the details (round off x to the nearest whole number): e) number of sales: f) profit: g) selling price: h) revenue: i) cost: j) check these results fit together: k) Find the range of prices you can charge and still be in the black: The lowest price you can charge is ___________ and the highest is ___________E Let the demand function for a product be given by the function D(q) = -1.65g + 270, where q is the quantity of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $4, 000 and variable costs are $3 per item produced. If 96 items are produced and sold, find the following: A) The total revenue from selling 96 items (to the nearest penny). Answer: $ B) The total costs to produce 96 items (to the nearest penny). Answer: $ C) The total profits to produce 96 items (to the nearest penny. Profits may or may not be negative.). Answer: $ Question Help: C ME PE Video 66°F Mostly cloudy
- If the MPx/Px is less than the MPY/Py, the firm should use more of Both X & Y inputs O Input X O Input Y ONeither X nor Y as it is impossible to figure out All of the aboveGiven Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q + 800, what profit can be earned if the price is set to be $550 per item? U The profit is $ 1,?9 (Round to the nearest cent.) A company produces a special new type of TV. The company has fixed costs of $499,000, and it costs STT00 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to $2000. Assumo a linear demand. What is the marginal profit if 200 TVs are produced It is $ 0 per item. (Round answer to nearest dollar.)E. A firm has the production function f(T1, 12) = 1750 , 50 What is the marginal rate of technical substitution (M RTS)? (a) MRTS =-1 2.5x, (b) MRTS = -x2/x1 (c) MRTS = -5x2/01 (d) MRTS =-0.5x2/21 (e) MRTS = -0.2x2/21 %3D %3D
- 1/3 1/3 Farmer Joe's production function is f(x1, x2) = ", where xị is the number of pounds of lemons he uses and x2 is the number of hours he spends 1/21/2 2wi"wy3/2, where y is the squeezing them. His cost function is c(w1. w2, y) = number of units of lemonade produced. (a) If lemons cost $1 per pound, the wage rate is $1 per hour, and the price of lemonade is p, what is his marginal cost function?Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average production rate of 2,000 units. Setup cost is $10; carrying cost is $1. What is the optimalnumber of units to be produced each time?0.8₁ A firm's production function is given by Q = 40K0.8L0.2 Each unit of capital costs $40 and each unit of labour costs $80. (a) Find the maximum level of output if the total input costs are $400,000. (b) Estimate the increase in production if an addtional $5,000 is made available. (c) Show that the ratio of marginal product to price is the same for both inputs. (a) Maximum output Q = (Round to the nearest integer as needed.)