Being driven by the high profit from digital asset trading, Doggycoin, Sulfikar has decided to set-up his own digital mining company. Let's assume that two main essential inputs in digital asset production be the high-quality graphic card (C) and electricity (E). After observing the business for few months, he finds the production function as Cobb-Douglas technology as the following: q(C,E) = CEB Where q is continuous, strictly increasing, and strictly quasi-concave and q(0) = 0.
Being driven by the high profit from digital asset trading, Doggycoin, Sulfikar has decided to set-up his own digital mining company. Let's assume that two main essential inputs in digital asset production be the high-quality graphic card (C) and electricity (E). After observing the business for few months, he finds the production function as Cobb-Douglas technology as the following: q(C,E) = CEB Where q is continuous, strictly increasing, and strictly quasi-concave and q(0) = 0.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Answer the following questions:
a. If the prices of graphic card and electricity denoted by c and e, respectively, and we
assume the cost-minimizing behavior. Solve for C and E in their prices and output
level, and what is the total cost function C(e, c, q)?
Transcribed Image Text:Being driven by the high profit from digital asset trading, Doggycoin, Sulfikar has decided to
set-up his own digital mining company. Let's assume that two main essential inputs in digital
asset production be the high-quality graphic card (C) and electricity (E). After observing the
business for few months, he finds the production function as Cobb-Douglas technology as
the following:
q(C, E) = CªE®
Where q is continuous, strictly increasing, and strictly quasi-concave and q(0) = 0.
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