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For the manufacturing company in problem 1, let the prices of input 1 and 2 be w₁ = 10 and w₂ = 40, respectively. (A) Find the amount of each input to hire to minimize the cost of producing y = 100 units of output: min C (x1, x2) = 10x1 +40x2 subject to: 10x12x1/2 = 100 What is the corresponding (minimized) cost of producing these 100 units? ③Ⓑ Find the input-demand functions x₁ (y) and x2(y), namely the formulas for the amount of each input that minimize the cost of producing a generic volume y of output: min C(x1, x2) = 10x1 +40x2 subject to: 10x12x3½-½ = y What is the corresponding (minimized) cost function, c(y)? (c) cirte) Draw the curves for the average cost, AC(y) marginal cost, MC(y) = c'(y). c(y) = and the y

For the manufacturing company in problem 1, let the prices of input 1 and 2 be w₁ = 10 and w₂ = 40, respectively. (A) Find the amount of each input to hire to minimize the cost of producing y = 100 units of output: min C (x1, x2) = 10x1 +40x2 subject to: 10x12x1/2 = 100 What is the corresponding (minimized) cost of producing these 100 units? ③Ⓑ Find the input-demand functions x₁ (y) and x2(y), namely the formulas for the amount of each input that minimize the cost of producing a generic volume y of output: min C(x1, x2) = 10x1 +40x2 subject to: 10x12x3½-½ = y What is the corresponding (minimized) cost function, c(y)? (c) cirte) Draw the curves for the average cost, AC(y) marginal cost, MC(y) = c'(y). c(y) = and the y

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.7P
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For the manufacturing company in problem 1, let the prices of input 1 and 2 be w₁ = 10 and w₂ = 40, respectively. (A) Find the amount of each input to hire to minimize the cost of producing y = 100 units of output: min C (x1, x2) = 10x1 +40x2 subject to: 10x12x1/2 = 100
Transcribed Image Text:For the manufacturing company in problem 1, let the prices of input 1 and 2 be w₁ = 10 and w₂ = 40, respectively. (A) Find the amount of each input to hire to minimize the cost of producing y = 100 units of output: min C (x1, x2) = 10x1 +40x2 subject to: 10x12x1/2 = 100
What is the corresponding (minimized) cost of producing these 100 units? ③Ⓑ Find the input-demand functions x₁ (y) and x2(y), namely the formulas for the amount of each input that minimize the cost of producing a generic volume y of output: min C(x1, x2) = 10x1 +40x2 subject to: 10x12x3½-½ = y What is the corresponding (minimized) cost function, c(y)? (c) cirte) Draw the curves for the average cost, AC(y) marginal cost, MC(y) = c'(y). c(y) = and the y
Transcribed Image Text:What is the corresponding (minimized) cost of producing these 100 units? ③Ⓑ Find the input-demand functions x₁ (y) and x2(y), namely the formulas for the amount of each input that minimize the cost of producing a generic volume y of output: min C(x1, x2) = 10x1 +40x2 subject to: 10x12x3½-½ = y What is the corresponding (minimized) cost function, c(y)? (c) cirte) Draw the curves for the average cost, AC(y) marginal cost, MC(y) = c'(y). c(y) = and the y
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