2. Consider the production function, f (z1, z2) = z} z . (a) Solve the PMP for factor demands z (p, w1, w2). (b) Find the supply function q (p, w1, w2). (c) Derive the profit function 1 (p, w1,' W2).
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- 3) Suppose a production function is y = x,"² x,", and w, is the price of x, and w, is the price of X2, and P is the price of output. a) Find the conditional factor demands. b) Find the cost function. c) Show that dx,/dw, = dx,/dw,.The demand equation for a product is p = a– bq and the cost function is C(9) = kq² – rq where p is the price of the product, q is the quantity sold and a, b, k and r are positive constants. Find the equilibrium quantity in terms of a, b, k and r.For a unit demand function p=24-8x where x is the number of units and p is the price in tk,finds tge sales function. If the average cost per unit is Tk,8 find a.The profit function, b.The number of units that maximize that profit function.
- What is the elasticity of substitution for the production function f(K, L) = K¹/4 [³/4? (a) o = 1 (b) o = -1 (c) o = 1 (d) σ = 3 2Given the input-output matrix below, find the output matrix if final demand changes to 500 for water, 180 for electric power, and 800 for agriculture. Industry Electric Power Industry: Water Electric Power Agriculture Other Water 200 100 300 400 The output matrix is X= (Round to two decimal places as needed.) 480 120 240 360 Agriculture Final Demand 180 240 120 60 290 140 600The demand and supply functions for a particular commodity are D(x) = 80e-0.001x and S(x)= 30e0.001r , where x is the number of units of the product, D(x) is the price that results in a consumer demand of x units and S(x) is the price that results in a producer supply of x units. a. Find the equilibrium point using your calculator and identify the equilibrium units and price. Give your answers to the nearest whole unit and nearest dollar. The value of x at equilibrium is units. The value of p at equilibrium is b. Determine the consumers' surplus.
- A competitive, profit-maximizing firm uses two inputs labor (L) and capital (K). Its production function is given by f (L, K) = 3L2 + 7K 2. Its output sells for $4 per unit. The price of labor is $6 per hour. The price of output rises to $8 per unit but factor prices do not change. (a) It will increase its hiring of labor by 4 hours. (b) It will increase its hiring of labor by 2 hours. (c) We need to know the price of capital to be able to determine the change in demand for labor. (d) It will increase its hiring of labor by 3 hours. (e) None of the above.Input either "increase" or "decrease" where relevant: A decrease in the price of a complementary good will cause its complement’s equilibrium price to ...... and the equilibrium quantity to .....The number x of bicycle helmets a retail chain is willing to sell per week at a price of $p is given by x = 80/p + 25 – 350, 20The production function is given by Q=10L+2K. The wage for labor is $20 dollar per unit and price for capital is $5 per unit. The optimal bundle (L, K) to minimize cost is: (0, Q/2) (Q/20, Q/4) (Q/15, Q/3) (Q/10, 0)The demand function for product B is qB = 20 + 6 pA -2pB , where qA and q B are the quantities demanded for A and B, respectively, and pA and pB are their respective prices. Determine the marginal demand for B with respect to pA from the following and A and B are complements or substistitute.Hi, I need help finding the correct solution for this problem. I have tried entering both "30" and "30.00" as the solution, but the program marked both as incorrect. I'm not sure whether I'm making a small error or if I'm completely off. Please help, Thank you.SEE MORE QUESTIONS