How much x should the firm use to maximize its profit

Assignment Help Econometrics
Reference no: EM13245330

A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?

Reference no: EM13245330

Questions Cloud

The shang victory over the xsia : The Shang victory over the Xsia:
Why would we praise or chastise the manager : The CEO of a major automaker overheard on of its division managers make the following statement regarding the firm's production plans: "In order to maximize profits, it is essential that we operate at the minimum point of our average total cost cu..
State what is the chemical calculation : what is the chemical calculation to figure out the following: calculate the [H+] in the following solution and indicate whether the solution is acidic or basic: [OH-] = 2.32 x 10-4
Examples of augustus''s efforts to stabilize the empire : All of the following were examples of Augustus's efforts to stabilize the empire except
How much x should the firm use to maximize its profit : A competitive firm uses a single input x to produce its output y. The firm's production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm's output is y = 4 + x.
Explain sodium are mixed with excess water : For the following reaction, 4.91 grams of sodium are mixed with excess water. The reaction yields 5.83 grams of sodium hydroxide.
What is the lowest resonant frequency of this pipe : The windpipe of a typical whooping crane is about 4.5 feet long. What is the lowest resonant frequency of this pipe
Explain sodium are mixed with excess water : For the following reaction, 4.91 grams of sodium are mixed with excess water. The reaction yields 5.83 grams of sodium hydroxide.
What is the p-value for a sample : State the null and alternative hypotheses and what is the p-value for a sample of 180 undergraduate students with a sample mean credit card balance of $3325?

Reviews

Write a Review

Econometrics Questions & Answers

  Explain is the franc selling at a premium or discount

The 1-year interest rate in the U.S. is 10%; in Switzerland it is 12%. The current spot rate (dollars per franc) is $0.40. a. What do you expect the 1-year forward rate to be b. Is the franc selling at a premium or discount

  How much of the twelfth payment will be interest

A man borrows $120,000 to buy a home. The interest rate is 4.5%, compounded monthly, and its period is 30 years. a) What will be the monthly payment (equal payments) for the life of the loan

  How many units will this firm produce in the short-run

Total Total Average Fixed Variable Total Total Marginal Quantity Cost Cost Cost Cost Cost 0 $40 0 40 X X 1 40 55 95 95 55 2 40 75 115 57.50 20 3 40 90 130 43.33 15 4 40 110 150 37.50 20 5 40 135 175 35 25 6 40 170 210 35 357 40 220 260 37.14 50 8 40 ..

  What is the average amount to pay per video movie

The only video rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P=20-2Q, where P is the rental price ($/day) and Q is the quantity demanded (movies per year)

  Determine what is the optimal number of fig leafs

What Gimbo most enjoys for dinner is eating fig leafs (F) and to accompany his meal with nothing better than an Arak (A) drink on the rocks. His utility function is represented by this equation : U=33(F)(A^2). Gimbo has $100 to spend on dinner dur..

  Should a risk neutral firm invest or not

The launch is risky because the demand could turn out to be either low or high. If the demand is high, the investment would give a return of $30 million, and if the demand is low, the return would be 0.

  Compute the mean life and determine the net present worth

A heat exchanger is being installed as part of a plant modernization program. It costs $80,000, including installation, and is expected to reduce the overall plant fuel cost by $20,000 per year. Estimates of the useful life of the heat exchanger r..

  Calculate the price of each vegetable in each year

Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2008, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $100, and 500 carrots for $50. In 2009, they buy 75 heads of cau..

  What is the price elasticity of demand

Suppose the own price elasticity of market demand for retail gasoline is -0.8, the Rothschild index is 0.7, and a typical gasoline retailer enjoys sales of $1,900,000 annually. What is the price elasticity of demand for a representative gasoline r..

  Estimate the true proportion of students at the college

What sample size would be needed to estimate the true proportion of students at your college (if you are a student) who are wearing backpacks, with 95 percent confidence and an error of ± 0.04

  Why office manager invest more time monitoring productivity

An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day (9am, 11am, 1pm and 3pm) office productivity has declined 30% since she assumed the helm one year ago.

  How would be measure the mc of oil between points a and b

Point A 4m barrels oil 200 tonnes lumber Point B 6m barrels oil 150 tonnes lumber a) If we had a PPF with the goods oil and lumber, how would be measure the MC of oil between points A and B

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd