can you explain how they got M=y^2/2 and L=2y^2 from part b of this question 15. Apple uses labour and machines to produce iPhones according to the production functiony = LM, where L is the number of units of labour used and M is the number of machines.The cost of labour is w₁ = 4 per unit and the cost of using a machine is wM = 16. Applefaces a fixed cost of F = 25 for renting its factory. Given these input prices, Apple chooseshow much labour and machines to employ in order to minimize the cost of producing anygiven amount of iPhones y. Apple is therefore solving a cost-minimization problem.(a) If Apple is cost-minimizing, how many workers will it use for each machine? Thatis, find the number of workers per machine that Apple will employ. (Hint: setup thetangency condition.)(b)Continuing to assume that Apple produces any given number of iPhones y in thecheapest way possible, use the equation defining the number of workers per machinefrom part (a) and Apple's production function to find expressions for the cost-minimizingchoices of labour and machines as functions of output produced y.=b) We have y LAMA and L = 4M. Solving them together gives: Mand L = 2y².

The production function describes the relationship between inputs used in production and the output…

Answered: can you explain how they got M=y^2/2…

Business

Economics

can you explain how they got M=y^2/2 and L=2y^2 from part b of this question

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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