Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is:?=?1/2?1/2?= is the number of pages in the finished book?= is the number of working hours spent by Smith?= is the number of working hours spent by JonesSmith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book.a) How many hours will Jones have to spend to produce a finished book of 300 pages?b) What is the marginal cost of the 300th page of the finished book? Prof. Smith and Prof. Jones are going to produce a new textbook. The production function forthe book is:q = s'zj*lz2q = is the number of pages in the finished bookis the number of working hours spent by SmithJ = is the number of working hours spent by JonesSSmith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL perworking hour. After having spent 900 hours preparing the first draft, Smith cannot contributeany more to the book. Jones will revise the Smith's draft to complete the book.a) How many hours will Jones have to spend to produce a finished book of 300 pages?b) What is the marginal cost of the 300th page of the finished book?

The production function shows the output produced with given resources. Marginal cost is the…

Answered: Prof. Smith and Prof. Jones are going…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 10E

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Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is:

?=?^1/2?^1/2
?= is the number of pages in the finished book
?= is the number of working hours spent by Smith
?= is the number of working hours spent by Jones
Smith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book.
a) How many hours will Jones have to spend to produce a finished book of 300 pages?
b) What is the marginal cost of the 300th page of the finished book?

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