For the manufacturing company in problem 1, let the prices of input1 and 2 be w₁ = 10 and w₂ = 40, respectively.(A) Find the amount of each input to hire to minimize the cost ofproducing 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 theformulas for the amount of each input that minimize the cost of producinga generic volume y of output:min C(x1, x2) = 10x1 +40x2 subject to: 10x12x3½-½ = yWhat 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 they

We got a cost minimization problem with constraint output level. Let's write the problem as Taking…

Answered: For the manufacturing company in…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

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Suppose that the cost function for a commodity is C(x) = 90 + x? dollars. (a) Find the marginal cost at x = 7 units. MC(7) = [ Tell what this predicts about the cost of producing 1 additional unit. The cost to produce the 8th unit is predicted to be $ (b) Calculate C(8) - C(7) to find the actual cost of producing 1 additional unit. $4
I need help please
The total revenue function for a product is given by R=655x dollars, and the total cost function for this same product is given by C=19,250+70x+x2, where C is measured in dollars. For both functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 25 units are produced and sold? c. What is the profit when 43 units are produced and sold?
1/3 1/3 Farmer Joe's production function is f(x1, x2) = ", where xị is the number of pounds of lemons he uses and x2 is the number of hours he spends 1/21/2 2wi"wy3/2, where y is the squeezing them. His cost function is c(w1. w2, y) = number of units of lemonade produced. (a) If lemons cost $1 per pound, the wage rate is $1 per hour, and the price of lemonade is p, what is his marginal cost function?
a b and c please
(a) For the cost function C(w1, w2, y) = 2y²w} w, calculate the Allen elasticity of substitution between the two inputs at the cost-minimizing input point (xf(w1, w2, y), a(w1, w2, y)). (b) Consider the production function f(r, y, z) = Vry + rz+ yz. Find the scale elasticity SE at (x, y, z) = (1,2, 3), (5, 1,6), (6, 6, 6) and determine if the pro- duction function is IRTS, CRTS, or DRTS locally at each point. (c) A profit maximizing firm in the market operates where the production exhibits decreasing return to scale (DRTS). Is this market in its long-run equilibrium? Justify your answer. (d) Suppose that there are the infinite number of potential firms that produce the identical output good y under the cost function C(y) = + 3. Assume free entry and exit. Find the long-run equilibrium output price p, the amount of the output that each firm in the market produces in the long-run equilibrium, and the value of profit that each firm earns in the equilibrium.
Please correct answer and don't use hand raiting
A firm has production function F(K, L) = 1/4 (K1/2 + L1/2) . The wage rate is w = 1 and the rental rate of capital is r = 3. (a) How much capital and labor should the firm employ to produce y units of output? (b) Hence find the cost of producing y units of output (the firm’s cost function). (c) Differentiate the cost function to find the marginal cost, and verify that it is equal to the value of the Lagrange multiplier
the cost to maintain inventory for the weather balloon is given by C (x)= (21500/x)+2.4x, where x is the number of balloons in inventory. find the marginal cost for adding the 101st balloon to the inventory. explain the meaning of this extra balloon in context to the scenario.
Given Q=100k0.5L0.5 , C=1200 w=30 r=40 (a)Determine the quantity of labour and capital the firm should use in order to minimize the cost. (b)What is the level of output at this level.
d and e please
Suppose that the cost, in dollars, for a company to produce x pairs of a new line of jeans is C(x)=7000+6x+0.01x^2+0.0002x^3. (a) Find the marginal cost function. (b) Find the marginal cost at x=100 (c) Find the cost at x=100

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