The forge produces iron (x) with the cost function C₂(x) = 6x², while it can sell the iron at the competitive price $12. The farmer produces apples (3) with the cost function C,(x, y) = 4y2 + 2xy, while it can sell the apples at the competitive price $14. If the forge decides the amount of iron production individually, how much more will it produce than the efficient output? Round your answer to 2 decimal points. Answer: 2.5

The forge produces iron (x) with the cost function C₂(x) = 6x², while it can sell the iron at the competitive price $12. The farmer produces apples (3) with the cost function C,(x, y) = 4y2 + 2xy, while it can sell the apples at the competitive price $14. If the forge decides the amount of iron production individually, how much more will it produce than the efficient output? Round your answer to 2 decimal points. Answer: 2.5

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.2P

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