Reference no: EM13143885

The following production table provides estimates of the maximum amounts of output possible with different combinations of two input factors, X and Y.  (Assume these are just illustrative points on a spectrum of continuous input combinations.)

  Estimated Output per Day

5	184	265	334	395	440
4	176	248	303	352	395
3	164	216	264	303	334
2	128	176	216	248	265
1	88	128	164	176	184
	1	2	3	4	5

a. List the different combinations of inputs X and Y that, if graphed, would illustrate an isoquant for an output of 176.

b. Assuming that output sells for $3 per unit and X is fixed at 5 units, complete the following table:

Units of Y employed	Total Product Of Y	Marginal Product of Y	Value Marginal Product of Y
1	184	184
2
3		69
4			183
5	440

c. Assuming the cost of Y is $200 per unit, how many units of Y should optimally be employed? Explain how you reached your answer.

d. Suppose that the cost of units of both input X and input Y are the same at $200 per day. Describe how isocost curves for a cost of $200 and also for a cost of $270 would look in terms of position and slope.