A firm has the following production function Y=(x_1^α+x_2^α )^(1/2α) Obtain the conditional demand functions for x1 and x2 given a level of output q.
Q: It is known that the demand function for a good is shown by the equation P = - 5Q + 110 and the…
A: Profit can be calculated as the difference between total cost and total revenue. First, total…
Q: In this problem, p is in dollars and x is the number of Suppose the demand function for a product is…
A: Given that, Demand function for a product is P = 9\ (x+1) Supply function is P = 1+0.2x
Q: The supply function for a product is Qs=2P - 14. while the demand function for the same product is…
A: ANSWER MARKETING EQUILIRIUM IS THE ACTUAL PRICE IN WHICH WORLD IS BALANCING ACT BETWEEN SUPPLY AND…
Q: f(x1, 12) = (x1 - 1)0.25x9-5.
A: We are going to use the relationship between upward sloping marginal cost curve and supply curve to…
Q: Given the production function f(x,x2) = x,ax, calculate the profit maximizing demand and supply…
A: The optimal degree of utilisation of a firm's inputs might help it reach the point of profit…
Q: Let x denote the level of output of a firm’s production process. The cost function is given by C (x)…
A: Profits are the excess of revenue receipts over the costs incurred by the firm. To maximize profits,…
Q: 8. A firm's total cost function is given by TC = 3Q +2Q,Q; +7Q; Where Q, and Q, denote the number of…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Consider a firm that maximizes profit function x^2y subject to the input…
A: We are going to use Lagrangian methodology to answer this question.
Q: Suppose a firm produced 2 goods x and y and must produce x + y = 42 and have a cost function of c =…
A: Total cost is the summation of total fixed cost and total variable cost. Total fixed cost is the…
Q: Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is…
A: Answer to the question is a follows:
Q: A firm produces output y from inputs x1 and x2 whose prices are given as w1 = 1 and w2 = 1…
A: Answer- Given in the question- The production function = y = x11/2 x21/2 Inputs x1 and x2 Prices w1…
Q: Consider a firm with a production function given by y = a ln x1 + ß lIn x2 with a, ß E (0,1) which…
A: The production function shows the technical relationship between input factors and output. It can be…
Q: The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and…
A: Hi! thanks for the question but as per the guidelines we can answer upto three parts at one time.…
Q: Suppose a firm produces according to the following production function y = x₁³x2 स What is the…
A: Given Firm's production function: y=x10.25x20.75 ...... (1) w1 and w2 be the input…
Q: The profit function of a firm to produce two goods is given as T=24Q1-Q12-Q1Q2-2Q22+33Q2-43.…
A: T=24Q1-Q12-Q1Q2-2Q22+33Q2-43. First, we will solve the firm's problem which is to maximize the…
Q: (B) A firm has production function Q =F(k,l) = (k+1)2 (where I and k are measures of labor and…
A: Above problem is based on the optimization problem of a firm , minimizing costs for given level of…
Q: A firm uses two inputs to produce a single product. If its production function is Q = x¹/4y¹/4 and…
A: Here, production function:- Q=x14y14 it sells at the price=$1 each input=$4
Q: The following graph input tool shows the daily demand for hotel rooms at the Triple Sevens Hotel and…
A: Income Elasticity of Demand is defined as the degree of responsiveness of a quantity demanded for a…
Q: If the production function is given by f(x1, x2) = min{x1, x2} + min{x3, x4}, what is the minimum…
A: A production function in economics describes the technological relationship between the quantities…
Q: Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its…
A: Hi, thanks for the question. Since there is multiple subparts, I will answer for the first question.…
Q: The production functions display the standard properties, including constant returns to scale. A…
A: Given information Household utility function: U(ca ,cb) There are 2 goods and 2 inputs given…
Q: Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 8. A firm's total cost function is given by TC = 3Q} +2Q,Q, +7Q; Where Q, and Q, denote the number…
A: Given Information TC = 3Q12 + 2 Q1Q2 + 7Q22 Q1 + Q2 = 40Q1=40-Q2
Q: 1. Find contingent demand functions and cost functions for the following production functions: i. q…
A: Since you have posted multiple question, but we are bound to solve only first question. Given…
Q: Problem 3: Long-Run Cost minimization Consider two cost-minimizing firms producing drones as their…
A: Cost minimisation is the optimisation problem of firm in which cost of production includes wages and…
Q: A firm faces the production function Q = 6K0 L0.5. If it can buy input K at £32 a unit and input L…
A: Cost is minimized when marginal rate of technical substitution equals price ratio of inputs.…
Q: The firm requires at least 2 units of good A or 4 units of good B in order to produce one unit of…
A: The production of the goods and services involves various inputs required for the production of the…
Q: The Director of ABC Enterprise hires labour (L) and rents capital equipment (K) in a competitive…
A: The optimal input bundle is when MPL/MPK = Wage rate / Rent of capitalWhere, MPL = Marginal product…
Q: The prices of inputs x1; x2; x3; x4 are p1 = 2; p2 = 2; p3 = 5; and p4 = 2. If the production…
A: The prices of inputs x1; x2; x3; x4 are p1 = 2 p2 = 2 p3 = 5 p4 = 2. If the production function is…
Q: A factory produces product A according to the production function QA = 100XA, where XA denotes the…
A: Profit maximizing allocation can be determined if price and cost is given . Let's assume it is given…
Q: Consider a firm that has the following production function: Y = min{x₁, ½x2}. The inputs' prices are…
A: Both inputs are used in the fixed proportion. This is a case of complementary inputs.
Q: A street musician bought a new fiddle for $850.00. Assume she breaks 1 string each hour and can buy…
A: Cost is a sum of fixed cost and variable cost. Fixed cost does not depend on hours worked on playing…
Q: Assume that the firm’s operation is subject to the following production function and price data:…
A: a.It is given that Q=3X+5Y-XY dq/dx=3-y dq/dy=5-x
Q: given the function c(x) = 100 + 8x + 0.1x^2 find the marginal profit At x = 50 if the price per unit…
A: given c(x) = 100 + 8x + 0.1x^2 x = 50 and price per unit (P)= 20
Q: A baseball teams attendance depends on the number of games it wins per season and on the price of…
A: Answer a) Profit of basketball = Revenue - cost =PQ - C…
Q: The demand function for a product is p = 40 – 29 where p is the price in dollars when q units are…
A: In Economics, Revenue functions are used to determine the maximum possible output which could…
Q: The prices of inputs x1; x2; x3; x4 are p1 = 2; p2 = 2; p3 = 5; and p4 = 2. If the production…
A: Let us say, A = min {x1, x2} and B = min{x3, x4}. Then, the production function looks like A + B.…
Q: Suppose the production of airframes is characterized by a CobbDouglas production function: Q =LK.…
A: The Cobb-Douglas (CD) production function is an economic production function that describes the…
Q: .A company can sell its only product and in a perfectly competitive market at a price of 15. To…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: You are the manager of a firm and you are required to optimize the Cobb-Douglas function given the…
A: (Q) You are the manager of a firm and you are required to optimize the Cobb-Douglas function given…
Q: For a unit demand function p=24-8x where x is the number of units and p is the price in tk,finds tge…
A: Sales function is demand function itself. Profit function is π = TR - TC
Q: The profit function of a good is given by the following: n = -5Q2 + 631Q – 3255 where P is the price…
A: The relationship between the quantity demanded a commodity (dependent variable) and the price of the…
Q: Given the input-output matrix below, find the output matrix if final demand changes to 500 for…
A: Demand is the quantity of consumers who are willing and ready to buy products at various prices…
Q: The prices of input (x1,X2,X3,X4) are (4, 1, 3, 2) a. If the production function is given by…
A: When the production function is of perfect complement, then all the inputs are required to be…
Q: Suppose a firm has a production function as follows: y = 4x 25 x25, The price of x1 and x2 are 2 and…
A: Production function shows the functional relationship between input of factors and output produced.…
Q: Suppose that the production functions be like as (A) i) Y = X15 X20.5 ii)Y= X10.5 + X20.5…
A: The production function shows the different combinations of factors of production that can be used…
Q: Given a firm which uses 2 inputs, X1 and X2; to produce a good that is described by the production…
A: Q=f(X1, X2) = X11/2 X21/4 Firm sells output at $80 per units. That is, P = 80 Cost of input1, X1 =…
Q: A firm's production function is f(x₁, x₂) = (min{x₁,5x₂ })¹/2. If the price of the first factor is…
A: Production function is the functional relationship between the output and inputs. The both inputs…
A firm has the following production function Y=(x_1^α+x_2^α )^(1/2α)
Obtain the conditional
Step by step
Solved in 2 steps
- Find the supply function and the input demand functions for the CES production function: f(x1,x2)=A(αxρ1 +(1−α)xρ2)β/ρ, where A > 0, β > 0, 0 < α < 1, and 0 ̸= ρ < 1.Suppose the utility function of a person consuming two commodities X and Y with income Birr 600 is given by U =2xy. If the per unit price of X is Birr 20 and per unit price of Y is Birr 40. a) Calculate the utility maximizing level of consumption of X1 and X2. b) Find the MRSX, Y at the optimum.If the production function of a firm is given by Q=,and the input prices are r = Birr 8 per unit and w = Birr 2 per unit,Given a Cobb-Douglas Technology specified as follows:f(x1, x2) = x1α x21−α 1. Find the marginal rate of technical substitution (MRTS)2. Derive the expression for Elasticity of Substitution
- MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the supply quantity when the price is $40.1. Inputs K, L, R and M cost £10, £6, £15 and £3 respectively per unit. What is the cheapest way of producing an output of 900 units if a firm operates with the production function Q = 20K0.4L0.3R0.2M0.25? 2. Make up your own constrained optimization problem for an objective function with three variables and solve it. 3. A firm faces the production function Q = 50K0.5L0.2R0.25 and is required to produce an output level of 1,913 units. What is the cheapest way of doing this if the per-unit costs of inputs K, L and R are £80, £24 and £45 respectively?The demand function for specialty steel products is given, where p is in dollars and q is the number of units. please answer parts b and c
- There is a firm making custom stuffed animals. The demand function for custom stuffed animals is: P = 1000 - 20Q The cost depends on how much of each of their inputs they use. It takes 3 inputs to make a stuffed animal: cotton, oil, and chorizo. The amount required, input prices, and restrictions are below: It takes 1 pound of cotton to make a stuffed animal. Cotton costs $20 per pound. They can buy up to 23 pounds of cotton. It takes 2 barrels of oil to make a stuffed animal. Oil costs $10 per barrel. They can buy up to 44 barrels of oil. It takes 3 chorizo burritos to make a stuffed animal. Burritos cost $5 per burrito. They can buy up to 100 burritos. Set this up in Solver to help them maximize profit by choosing the best quantity of stuffed animals to produce, subject to the constraints of the maximum amount of cotton/oil/burritos they can buy. In the space below, tell the profit that the firm will earn when they maximize its profit. PLEASE SHOW EXCEL WALKTHROUGH USING SOLVER.…You are the manager of a firm and you are required to optimize the Cobb-Douglas function given the following parameters. The maximum amount of money available to spend is $340 where the price of K=8 and the price of L=4. That is Pk=8 and Pl=4. The function is given as q=K0.4L0.6 . What is the constraint equation?Consider a firm that maximizes profit function x^2y subject to the input constraint 2x^2+y^2=3 where x, y are inputs in the production. Find the extra profits garnered by the firm if the input constraint is relaxed by changing 3 to 3.3. Consider only positive values for optimal inputs and the multiplier.
- Suppose that the production function is given by y = 2x0.5 The price of x is $3 and the price of y is $4. Derive the corresponding VMP and AVP functions. What is MFC? Solve for the profit-maximizing level for input use x.A firm produces output y from inputs x1 and x2 whose prices are given as w1 = 1 and w2 = 1 respectively. The production function is y = x11/2 x21/2 a) Write the Lagrangian function b) Find the firm’s cost functionThe demand and supply functions for coal are given as: (In pictures) what is the inverse demand function? what is the inverse supply function?