Suppose your company seeks to maximize their production. Maximizeyour company's production function of: 2A + 4B, subject to the followingconstraints:DM: 1A 1B < = 750DL: 1A5B < = 1,000OH: 1A 1B < = 900Please graph each constraint on the same graph. Put B on the verticalaxis. Label the quantity intercept, for each item, on each constraint. Labelthe point, on each axis, where the maximized function provides theoptimal quantity of each item.

Step 1:Graph all the constraints in a graphing calculator with A = x and B = y. Step 2: Identify…

Answered: Suppose your company seeks to maximize…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a firm that produces glass. Glass production involves melting sand, soda ash, and limestone at a very high temperature. Consider the following factors that a glass manufacturer faces, and determine whether each represents a technological constraint or a market constraint: Items (7 items) (Drag and drop into the appropriate area below) No more items Categories Market constraint Hourly wage of workers in the industry The number of other firms selling similar products The number of buyers in the market Cost per pound of limestone Cost per pound of sand Cost per hour of keeping the furnace at the required temperature Technology constraint Maximum amount of output per hour that can be produced
A software firm has only two inputs to production: domestic programmers based in the firm's U.K. office and international programmers working from home in low-cost countries. The two types of programmers are perfect substitutes but domestic programmers are more productive due to better communication in the office. The production function is: S=2D + I Where S is the amount of software written, D is the number of domestic programmers and I is the number of international programmers. Programmers can work part-time, so hiring 0.3 of a programmer would be possible. (a) The firm must produce 10 pieces of software this year. Show the firm's isoquant in a suitably labelled graph. Put "domestic programmers" on the vertical axis and "international programmers" on the horizontal axis. Label each axis from 0 to 10. (b) A domestic programmer can be hired for £100,000 per year. An international programmer can be hired for £60,000 per year. On the same graph, show the different combinations of…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Given the input-output matrix below, find the output matrix if final demand changes to 600 for water, 130 for electric power, and 700 for agriculture. The output matrix is x = (Round to two decimal places as needed.) Given the input-output matrix below, find the output matrix if final demand changes to 600 for water, 130 for electric power, and 700 for agriculture. Industry Electric Water Power Agriculture Final Demand Water 160 300 200 Industry: Electric Power 80 120 300 Agriculture 240 60 200 Other 320 120 300 22201 400 The output matrix is X= (Round to two decimal places as needed.)
1. Suppose that a producer has the following production function: Q = K³L'® Where Q is output, and L and K are man-hours and machine-hour the two inputs used in the production process. 1A) Set up the cost minimization problem as shown in class - In the cost minimization problem, the cost is minimized subject to constraint production function. It is indicated as follows: Minimize wL + rK subject to constraint Q = K3 L16 A = wL + rK + (Q-K-L6) The Lagrange f unction is differentiated by K andL to calculate the minimize the cost, and W= wage rate L=Labor R= real interest rate K = capital Q = output A= parameter coefficient 1B) Determine the cost-minimize ratio of inputs where capital costs $1 per machine-hour and labor costs $4 per lab- hour. - MRTS = Marginal product of labor Marginal product of capital Q = KL!6
You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs of chocolate daily at lowest possible cost. Mathematically, you have: Q1 = Quantity produced at Chocolate Factory #1 Q2 = Quantity produced at Chocolate Factory #2 Daily total overall production: Q1 – Q2 = 420 At present, each factory produces half the overall requirement. This means that Q1 = 210, Q2 = 210 a) Following your logic , you realize that as long as the marginal cost is different between the two factories, you can lower overall cost while maintaining production at 420 kgs. So, to reduce the overall cost to the lowest possible, you decide to move more than 1 kilogram from one factory to another. As a result, each factory will produce a different quantity of chocolate while the overall daily production remains at 420 kgs. To minimize overall cost, how many kilograms will you order/instruct Factory #1 to produce? Q1 = ____________kgs And how many kilograms would you…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
A gardener is trying to maximize profit by growing tomatoes (T) and carrots(C) with fertilizer(F). The production functions are: Tomatoes: T = 70F₁ - 1.5F-² Carrots: C = 90Fc - 2Fc² Constraint: FT + Fc = 60 The profit is $0.50 per tomato and $0.25 per carrot. There are 60 units of fertilizer available. How much fertilizer should go to the tomatoes?
Explain the effects of imposing a constraint in an optimization problem. Give at least one economic example.
K0.8 10.2 Consider a firm with the production function F(K, L) 10. (Concretely, imagine that due to technological imperfections, the first 10 units of output are unus- able, so that if the firm produces 100 units of a good, only 90 are of sufficient quality). If the firm is currently using L = 20 units of labor and K = 20 units of capital, what is the elasticity of substitution? (a) 1 (b) 2 (c) 4 (d) 8 (e) 10 =
None
Let y = f(x1, x2)=x11/2 + x1x2 be a firm’s production function, where x1≥0, x2≥0. Write down the firm’s production possibility set, and its input requirement set. Is this production function concave, quasi-concave? Is this production function homogenous? Find its returns to scale when x1=1, and x2=1.

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