1. Suppose that the output sells for $5 and the input sells for $4. Fill in the blanksin the following table.|X inputY outputVMPAVP10502575408050852. Suppose that the production function is given byy = 2x0.5The price of x is $3 and the price of y is $4. Derive the corresponding VMPand AVP functions. What is MFC? Solve for the profit-maximizing level for inputuse x.

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1. Suppose that the output sells for $5 and the input sells for $4. Fill in the blanks in the following table. X input Y output VMP AVP 10 50 25 75 40 80 50 85

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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