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- Consider a delivery company whose output is ffnumber of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company.

- Consider a delivery company whose output is ffnumber of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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2 / 4 100% 6. Some farmer-centric publications and media outlets in North America offer awards and prizes for farmers with the highest per-acre output of a certain crop. Using only the information from this class, why might getting one of these awards actually be a bad thing? K LP. 7. Consider the two-input production function q = S(K, L) Explain how a change in the output price influences the cost-minimizing %3D choice of L. 8. In the standard cost-minimization problem, 2, the Lagrange multiplier, has no influence on the tangency condition. Can it have an impact on the cost-minimizing choices of capital or labour? Why or why not? If not, then what is the role of A in the cost-minimization problem? 9. Describe the influence of a change in output price on the conditional fac- tor demand functions. 10. A worldwide energy supply shortage will likely drive up energy prices by significant amounts this winter. Using the material from the second half of this course, explain the likely impacts on farmers. Relate your answer to the shape of production and cost functions and ease of input sybstitu- tion.
Transcribed Image Text:2 / 4 100% 6. Some farmer-centric publications and media outlets in North America offer awards and prizes for farmers with the highest per-acre output of a certain crop. Using only the information from this class, why might getting one of these awards actually be a bad thing? K LP. 7. Consider the two-input production function q = S(K, L) Explain how a change in the output price influences the cost-minimizing %3D choice of L. 8. In the standard cost-minimization problem, 2, the Lagrange multiplier, has no influence on the tangency condition. Can it have an impact on the cost-minimizing choices of capital or labour? Why or why not? If not, then what is the role of A in the cost-minimization problem? 9. Describe the influence of a change in output price on the conditional fac- tor demand functions. 10. A worldwide energy supply shortage will likely drive up energy prices by significant amounts this winter. Using the material from the second half of this course, explain the likely impacts on farmers. Relate your answer to the shape of production and cost functions and ease of input sybstitu- tion.
100% 1 / 4 - Consider a delivery company whose output is "number of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company. 2. Consider a Cobb-Douglas production function, f(K, L) = Kª L* ,where K is capital, L is labour, and (a, 6) are parameters. Describe in words how to choose capital and labour to maximize the production of output. 3. Consider a canola producer with a two-input production function: VSN q = f(S, N) = S+ N where S is seed and N is nitrogen. Calculate the marginal product of ni- trogen. Does the marginal product of nitrogen depend on the amount of seed used? Explain. 4. Assume that all you knew about a two-input production function, f(K, L), was the following: a2 f(K, L) > 0. Is that enough to know that profit maximization is or is not possible? How know? Explain. do you 5. When a farm faces a downward sloping demand curve, its production de- cision influences the output price. In a competitive market, the demand
Transcribed Image Text:100% 1 / 4 - Consider a delivery company whose output is "number of packages deliv- ered" from two inputs, trucks and drivers. Assuming that only one driver can drive one truck, draw (and correctly label) a production isoquant for the delivery company. 2. Consider a Cobb-Douglas production function, f(K, L) = Kª L* ,where K is capital, L is labour, and (a, 6) are parameters. Describe in words how to choose capital and labour to maximize the production of output. 3. Consider a canola producer with a two-input production function: VSN q = f(S, N) = S+ N where S is seed and N is nitrogen. Calculate the marginal product of ni- trogen. Does the marginal product of nitrogen depend on the amount of seed used? Explain. 4. Assume that all you knew about a two-input production function, f(K, L), was the following: a2 f(K, L) > 0. Is that enough to know that profit maximization is or is not possible? How know? Explain. do you 5. When a farm faces a downward sloping demand curve, its production de- cision influences the output price. In a competitive market, the demand
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