. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is Q(H, K) = H + 4K (2) -Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K. -Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

4. Omi Sushi uses waiters H and robots K to produce orders Q. The firm production function for Omi Sushi is

Q(H, K) = H + 4K (2)

-Suppose that the government mandates that Omi can only produce Q = 20 meal orders per day. Substitute 20 in for Q and rearrange the firm production function so that H is a function of K.

-Where does Omi Sushi produce at Q = 20 at minimal cost? Label the point on your graph. From this point, determine the amount of labor H and capital K at which it maximizes profit.

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education