2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet ofnew pavement (Q) per day according to the production functionQ = 100S -5S² + 50U-5U²Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company paid$40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skilledand unskilled workers.a. How many skilled and unskilled workers should be hired in order to produce the most pavement?Show your work/thought process:b.What is the profit-maximizing Q?

Production Function This link between the amounts of productive inputs (such as labor and capital)…

2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function Q = 100S-5S² + 50U-5U² Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company pa $40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skille and unskilled workers. a. How many skilled and unskilled workers should be hired in order to produce the most pavement? Show your work/thought process: b. What is the profit-maximizing Q?

2. A construction site uses two types of workers - skilled (S) and unskilled (U). They produce feet of new pavement (Q) per day according to the production function Q = 100S-5S² + 50U-5U² Skilled workers are paid $200 per day, while unskilled workers are paid $100 per day. The company pa $40,000 for equipment for the skilled workers. The company has a daily budget of $2,000 to hire skille and unskilled workers. a. How many skilled and unskilled workers should be hired in order to produce the most pavement? Show your work/thought process: b. What is the profit-maximizing Q?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 9TY

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(a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing when x = 60,000. | per game system Compare this with the exact cost of producing the 60,001st game system. The cost is increasing at the rate of $ | game system is $| the estimated cost of producing the 60,001st game system found using the marginal cost function. | per game system. The exact cost of producing the 60,001st J. The actual cost of producing the 60,001st game system is --Select-- (b) Find the average cost function C(x) and the average cost to produce the first 60,000 game systems. (Round your answer to the nearest cent.) C(x) C(60,000) - $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 60,000 game systems.
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1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?