4. Pot & Gold Inc. makes and sells Christmas ornaments in a perfectly competitive market. Its production function is given by f(x, z)=√√x+2, where x denotes the amount of plastic and z denotes the amount of wood. The price of plastic is w₁ and the price of wood is w₂. Let y denote the amount of Christmas ornaments produced and p denote the price of Christmas ornaments (p>0).
4. Pot & Gold Inc. makes and sells Christmas ornaments in a perfectly competitive market. Its production function is given by f(x, z)=√√x+2, where x denotes the amount of plastic and z denotes the amount of wood. The price of plastic is w₁ and the price of wood is w₂. Let y denote the amount of Christmas ornaments produced and p denote the price of Christmas ornaments (p>0).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
a) when w1 = 8 and w2 = 9, derive the supply function y(p) for Pot & Gold Inc
b) Suppose that Pot & Gold Inc has to pay a quasi-fixed cost of $50. When w1 = 8 and w2 = 9, derive the supply function y(p) for Pot & Gold Inc
![4. Pot & Gold Inc. makes and sells Christmas ornaments in a perfectly competitive market.
Its production function is given by f(x, z) = √√x + z, where x denotes the amount of plastic
and z denotes the amount of wood. The price of plastic is w₁ and the price of wood is w₂. Let
y denote the amount of Christmas ornaments produced and p denote the price of Christmas
ornaments (p>0).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3252857f-5add-4c2e-a63e-6770d06c45bc%2Fc6c6bc14-5dd5-4c04-aabe-275a35cbb91d%2Fsnzx1p_processed.png&w=3840&q=75)
Transcribed Image Text:4. Pot & Gold Inc. makes and sells Christmas ornaments in a perfectly competitive market.
Its production function is given by f(x, z) = √√x + z, where x denotes the amount of plastic
and z denotes the amount of wood. The price of plastic is w₁ and the price of wood is w₂. Let
y denote the amount of Christmas ornaments produced and p denote the price of Christmas
ornaments (p>0).
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