Solve following questions, diagrams required James uses kiwi k) and labor (L) to makeJuice Cq) .Procuction function:9=min(3,KO.Slavor mcasured in haurskiwi in kSSuicu in lottlesA Draw isuants forlabor on horiontal aas9=1,9%=2,93kiwi on wrtical13B) Price lalour-hour w= $15Price per ks of Riuis P- $4find optimai amouni of laliaur and kiwito produce q Lottles of Juicc if Jamuminimises osts.Praucde eapcssIons for Lla), Rla)Praw ondiagram with part A

We know that for minimum functions we always produce at the kink. Which means : L/3 = K^0.5 So q =…

James uses kiwi k) and labor (L) tomake Juice Ca). Production function 9=min(43,R %3D lavor musured in haurs kiwi in kS Suicu in Gottles ADraw isoants for q-1,=2,9-3 laber on horiontal aus, kiwi on wrtical Price lalour -hour w: $15 Price per ks of Riuis P= 34 findl optimai amouni of laliaur and kiwi to produce q Cottles of Juice if Jamo minimises Costs. Praucde Praw on čliasram with nurt eapessions . for Lla), Rl)

James uses kiwi k) and labor (L) tomake Juice Ca). Production function 9=min(43,R %3D lavor musured in haurs kiwi in kS Suicu in Gottles ADraw isoants for q-1,=2,9-3 laber on horiontal aus, kiwi on wrtical Price lalour -hour w: $15 Price per ks of Riuis P= 34 findl optimai amouni of laliaur and kiwi to produce q Cottles of Juice if Jamo minimises Costs. Praucde Praw on čliasram with nurt eapessions . for Lla), Rl)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.8P

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