1. Given the following input-output relationship: Labor O Output O 1 10 Inputs X1 X2 2 14 A 825 1,350 3 19 4 5 27 44 B 900 1,130 6 57 a. Assuming that the output price is Php20.00 per unit and the variable input costs Php180.00 per unit, determine the optimum innut level using the total approach. 2. The different input combinations of X1 and X2 that produce the same amount of product Y are given below: Combination C 975 935 7 69 D 1,050 770 8 71 9 72 E 1,125 620 F 1,200 525 a. Compute for the MRTS. b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit, respectively, find for the least-cost input combination. Use the marginal approach. If the price of X2 becomes half that of X1, what is the new least-cost combination? Use the marginal approach. c.
1. Given the following input-output relationship: Labor O Output O 1 10 Inputs X1 X2 2 14 A 825 1,350 3 19 4 5 27 44 B 900 1,130 6 57 a. Assuming that the output price is Php20.00 per unit and the variable input costs Php180.00 per unit, determine the optimum innut level using the total approach. 2. The different input combinations of X1 and X2 that produce the same amount of product Y are given below: Combination C 975 935 7 69 D 1,050 770 8 71 9 72 E 1,125 620 F 1,200 525 a. Compute for the MRTS. b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit, respectively, find for the least-cost input combination. Use the marginal approach. If the price of X2 becomes half that of X1, what is the new least-cost combination? Use the marginal approach. c.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![1. Given the following input-output relationship:
O
Labor
Output O
1
10
Inputs
X1
X2
2
14
A
825
1,350
3
19
4
5
27 44
a. Assuming that the output price is Php20.00 per unit and the variable input costs
Php180.00 per unit, determine the optimum innut level using the total approach.
B
900
1,130
2. The different input combinations of X1 and X2 that produce the same amount of
product Y are given below:
Combination
6
7
8
57 69 71
C
975
935
9
72
D
1,050
770
E
1,125
620
F
1,200
525
a. Compute for the MRTS.
b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit,
respectively, find for the least-cost input combination. Use the marginal approach.
If the price of X2 becomes half that of X1, what is the new least-cost combination?
Use the marginal approach.
c.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F409b9142-20d9-4f17-9785-47022f000408%2F582d6192-74ec-4bd9-8ff7-908f9871cff9%2F35prey_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Given the following input-output relationship:
O
Labor
Output O
1
10
Inputs
X1
X2
2
14
A
825
1,350
3
19
4
5
27 44
a. Assuming that the output price is Php20.00 per unit and the variable input costs
Php180.00 per unit, determine the optimum innut level using the total approach.
B
900
1,130
2. The different input combinations of X1 and X2 that produce the same amount of
product Y are given below:
Combination
6
7
8
57 69 71
C
975
935
9
72
D
1,050
770
E
1,125
620
F
1,200
525
a. Compute for the MRTS.
b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit,
respectively, find for the least-cost input combination. Use the marginal approach.
If the price of X2 becomes half that of X1, what is the new least-cost combination?
Use the marginal approach.
c.
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