Problem 1: Winter melons A farmer is using land and fertilizer to produce winter melons. The production function is q = L√VF. The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of and and 4 units of fertilizer. a) Would it be possible to produce the same number of winter melons at a lower cost? In particular, ould the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to eep production constant? Or by doing the other way round?

Problem 1: Winter melons A farmer is using land and fertilizer to produce winter melons. The production function is q = L√VF. The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of and and 4 units of fertilizer. a) Would it be possible to produce the same number of winter melons at a lower cost? In particular, ould the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to eep production constant? Or by doing the other way round?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The profit from the supply of a certain commodity is modeled as P(q) = 71ge-0.29 dollars where q is…

A: At some point, the company touches its optimum production level, the point at which manufacturing…

Q: (b) What is the actual and maximum flow rates of the three sandwich types? Veg per hour Chicken per…

A: Introduction Flow rate is a minimum of process capacity and demand. Since all demand can be…

Q: Question 4 Consider the production function Y = ƒ (L) = e¹¹ (L² − 8) where Y = units of output, L =…

A: Marginal product refers to the additional output produced when one additional unit of input…

Q: A retail store in Makkah, receives shipments of a particular product from Jeddah and Taif. Let X be…

A: a.) total=y+x on the grounds that it will be the amount of the two shipment amounts.

Q: 1/3 1/3 2. Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His…

A: Production function is the mathematical expression in economics that postulates the relationship…

Q: 4. Assume that fruit-picking can be done by children or adults, but that adults are twice as…

A: Production function Q=10*(2LA+LC) LA--- adult labor LC---child labor Price of LA=100 per day Price…

Q: can you please provide teh full solution without any AI, can you show the mathematical working out…

A: step1: step2:step3:

Q: 6)ABC company is using labor and capital to build widgets The last employee produced 20 more widgets…

A: 6. The marginal product of labour = 20 The price of labour = $10 The marginal product of…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: Consider the input output table below Table (Inter) final Total (Agric) (Manuf) (Mining)demand…

A: Given information

Q: The wage rate of Zeta Corp. employees is 20 million per month, while the cost of one unit of machine…

A: The optimal level of production is the result where the minor income got from the last unit…

Q: A farmer can produce f(x,y) = 208-√4x² + y² units of produce by utilizing x units of labor and y…

A: To calculate the marginal productivity of labor at a specific point, we can take the partial…

Q: You produce widgets. Currently you produce four widgets at a total cost of $40. What is your average…

A: The average cost is the total cost divided by the quantity of output whereas the marginal cost is…

Q: Part 1 of 2 40%, 2 of 5 points Points: 0 of 1 Save The marginal cost of a product can be thought of…

A: To minimize the marginal cost of producing digital cameras, we need to find the minimum point of the…

Q: 2. With reference to Example 9.5.1, let R(Q) = 80Q and C(Q) = Q2 + 10Q + 900. The firm can produce…

A: Here we have to draw and analyse the profit maximizing output of the firm.The costs a company…

Q: A Cobb-Douglas production function for new company is given by FF(KK, LL) = KK3/5LL2/5 where K…

A: The optimal quantity of labor and capital would be when MPL / MPK = W / R

Q: Constrained Optimization A firm wants to minimize the cost of producing 100 units of output given…

Q: FC = $20, VC = $10, what is TC? %3D %3D

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A company produces commercials. A 2-minute commercial, for example, needs exactly 5 minutes of…

A: Production function is used to explain how inputs and outputs relate to one another during the…

Q: park Studio produces commercials for other companis. A 2-minute commercial, for example, needs…

A: Isoquant is the graphical representation of all the combinations of inputs on a curve that produces…

Q: Isocost and Production functions What is the optimal mix of x₁ and X₂? C = 5x₁ + 10x₂ Q = 10x₁³x₂+

A: To find the optimal mix of factors of production of a production unit, the least-cost combination of…

Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Problem 1: Winter melons
A farmer is using land and fertilizer to produce winter melons. The production function is q = L√F.
The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of
land and 4 units of fertilizer.
a) Would it be possible to produce the same number of winter melons at a lower cost? In particular,
would the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to
keep production constant? Or by doing the other way round?
b) Suppose now that the farmer cannot modify the amount of land but can modify the amount of fertilizer.
Write the cost function.
c) The farmer can bring the winter melons to a market and sell them at price 1. Find the optimal
quantity to produce. Show that the profit is negative.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

.(a) A firm has production function q(k,l) = k'/³1²/3, where k denotes the capital used and I denotes the labour employed. Suppose that each unit of capital costs v dollars and each unit of labour costs w dollars, so that the capital and labour costs are vk + wl. Use the Lagrange multiplier method to determine the values of k and I that minimise the cost of producing Q units of the firm's good. Find the corresponding minimised value, C, of this cost and the value, X*, of the Lagrange multiplier corresponding to the optimising values of k and l. Show that d* =
A T-shirt screener can screen t-shirts (q) in two different ways. He can either use a fast screening machine (F) or a slow screening machine (S). Screen use is defined in terms of ”hours” running. His production function is f(F, S) = 10F + 6S. (a) The screener wants to be able to produce 120 shirts. List three feasible and efficient production plans (combinations of inputs) for doing this. (b) Graph the screener’s isoquant curve for q = 120. (c) The hourly cost of using the fast machine is $800 and the hourly cost of the slow machine is $200. What is the cost minimizing (optimal) combination of inputs for producing 120 shirts? (d) Suppose the screener must now produce 400 shirts. What is the cost minimizing combination of inputs?
QUESTION 3 Zeus owns a factory which makes guitars which sell for $400 each. The number of guitars he can make in a month depends on the size of his crew. He pays each person on his crew $1500/month. He also pays rent on a building, which he has leased for the remainder of the year for $2000/month. The table below indicates how many guitars can be built, as a function of the size of his crew (the crew size excludes himself). You may assume all other cost, such as materials, are 0. Size of Crew Total # of Guitars 1 4 2 8 3 19 4 28 5 40 6 50 7 58 8 earns without a dollar sign and without a comma). 64 The size of the crew that maximizes the firm's profits is 9 67 10 70 11 72 12 The Marginal product of labor is the additional output per worker. Crew member delivers the greatest marginal product. 74 13 and Zeus dollars in profit per month (please record your answer 75
Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is s At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 1,000 700 30 400 90 200 100
.A company can sell its only product and in a perfectly competitive market at a price of 15. To produce it, it must purchase two production inputs: labor (x1) and machinery (x2). Initially, the company only has 1 machine and it is not possible to change this in the short term. Inputs are purchased in competitive markets with respective prices (w1, w2) = (5,10). The production function is as follows: 3 2/3 1/3 f(x,x2) a) Present the problem of maximization of the company. b) Find the first order condition that must be solved to find the optimal level of supplies. c) Find the optimal input level x1 that the company must contract in the above problem to maximize your profits.
can you please provide explanations and working
Yummy Gummies, Inc. makes boxes of individually packaged gummies. The company has a cost function given by C(x) dollars when x boxes of Yummy Gummies are made. If C '(100) = $3.50 per box, which of the following can we conclude from this information? %3D O The approximate cost of making the 100" box of Yummy Gummies is $3.50. O The exact cost of making the 99h box of Yummy Gummies is $3.50. The approximate cost of making the 101“ box of Yummy Gummies is $3.50. O The approximate cost of making the 99 box of Yummy Gummies is $3.50. O The exact cost of making the 101st box of Yummy Gummies is $3.50.
3. Suppose that the feasible region of a cost minimization linear programming problem has three corners points of (5,8), (10,5), and (4,10). If the objective function is given as: Minimize Z = 2X + Y Which of the following represents an iso-cost line? Select one: a. X + 2Y = 10 b. X – Y = 10 c. 2X – Y = 10 d. 2X + Y = 10 e. none of the other options.