The elasticity of demand for p = 100 − 0.5 q and graph the function f ( q ) = η ( q ) .

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Answer 1

Question

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

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The Cobb-Douglas production function is a classic model from economics used to model output as a function of capital and labor. It has the form f(L, C) = CL1C2 where co, C₁, and c₂ are constants. The variable L represents the units of input of labor and the variable C represents the units of input of capital. (a) In this example, assume co = 5, C₁ = 0.25, and C₂ = 0.75. Assume each unit of labor costs $25 and each unit of capital costs $75. With $65,000 available in the budget, develop an optimization model for determining how the budgeted amount should be allocated between capital and labor in order to maximize output. Max s.t. L, C ≥ 0 $ ≤ 65,000 (b) Find the optimal solution to the model you formulated in part (a). What is the optimal solution value (in dollars)? Hint: Put bound constraints on the variables based on the budget constraint. Use L≤ 3,000 and C ≤ 1,000 and use the Multistart option as described in Appendix 8.1. (Round your answers to the nearest integer when necessary.)…

Answer 2

Question

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Answer 6

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

Answer 7

Chapter 11, Problem 38RE

(a)

To determine

To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

Answer 8

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

Answer 9

(b)

To determine

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

Answer 10

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

Answer 11

(c)

To determine

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

Answer 12

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Answer 13

(d)

To determine

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 11.1 - 1. Ch. 11.1 - 2. If Ch. 11.1 - Prob. 3CP Ch. 11.1 - 4. Find . Ch. 11.1 - Prob. 1E Ch. 11.1 - Prob. 2E Ch. 11.1 - Prob. 3E Ch. 11.1 - Prob. 4E Ch. 11.1 - Prob. 5E Ch. 11.1 - Find the derivatives of the functions in Problems...

The elasticity of demand for p = 100 − 0.5 q and graph the function f ( q ) = η ( q ) .

Solution Summary: The author explains how to calculate the elasticity of demand for p=100-0.5q and graph the function.

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To calculate: The elasticity of demand for p=100−0.5q and graph the function f(q)=η(q).

To calculate: The value where f(q)=1 and the quantity for which the product has unitary elasticity if the elasticity of demand for p=100−0.5q.

To graph: The revenue function is R=(100−0.5q)q and find the value for quantity for which revenue is maximum. if the elasticity of demand for p=100−0.5q.

The relationship between elasticity and maximum revenue if the elasticity of demand for p=100−0.5q.

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