2. A company's production output P is given in tons, and is a function of the number of workers N and the value of the equipment V, in units of $25, 000. The production function for the company is P(N,V) = 5N³/¼y/4_ The company currently employs 80 workers, and has equipment worth $750, 000. (a) What are N and V in this case? (b) Find Py and Py, then the values of P, Px, and Py at the values of N and V that you found in (a). (c) Give units and explain what each answer means in this context.
2. A company's production output P is given in tons, and is a function of the number of workers N and the value of the equipment V, in units of $25, 000. The production function for the company is P(N,V) = 5N³/¼y/4_ The company currently employs 80 workers, and has equipment worth $750, 000. (a) What are N and V in this case? (b) Find Py and Py, then the values of P, Px, and Py at the values of N and V that you found in (a). (c) Give units and explain what each answer means in this context.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
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