Professor Steven and Professor John are going to produce a new introductory textbook. They face the production function for the book as q = S'/2j1/2, where q = the number of pages in the finished book, S = the number of working hours spent by Steven, and J= the number of hours spent working by John. %3D After having spent 900 hours preparing the first draft, time which he valued at $3 per working hour, Steven has to move on to other things and cannot contribute any more to the book. John, whose labor is valued at $12 per working hour, will revise Steven's draft to complete the book. a. How many hours will John have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages? b. What is the marginal cost of the 150th page of the finished book? Of the 300th page? Of the 450th page?

Professor Steven and Professor John are going to produce a new introductory textbook. They face the production function for the book as q = S'/2j1/2, where q = the number of pages in the finished book, S = the number of working hours spent by Steven, and J= the number of hours spent working by John. %3D After having spent 900 hours preparing the first draft, time which he valued at $3 per working hour, Steven has to move on to other things and cannot contribute any more to the book. John, whose labor is valued at $12 per working hour, will revise Steven's draft to complete the book. a. How many hours will John have to spend to produce a finished book of 150 pages? Of 300 pages? Of 450 pages? b. What is the marginal cost of the 150th page of the finished book? Of the 300th page? Of the 450th page?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.3P

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