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Q. 10. HW 9 (MO) A rm that uses two inputs to produce output has production function 3x1/3 y 1/3 , where x is amount of input 1 and y is amount of input 2. price of output is 1 and prices of inputs are wx and wy . rm is constrained by government to use exactly 1000 units of input 1. How much of input 2 does it use? What is most that it is willing to bribe an inspector to allow it to use another unit of input 1? 11. HW 10 (MO): A rm that uses two inputs to produce output has production function 4x1/4 y 3/4 . price of output is 1 and price of each input is 1. rm is constrained to use exactly 1000 units of input x. How much of input y does it use? What is approximately maximum amount rm is willing to pay to be allowed to use e more units of input x, for e small?
What is the solution for the manager of Collinis Import Autos believes the number of cars sold in a day (Q)depends on two factors.
Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.
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An industry's marginal abatement cost is MAC=2000-e. regulator controls emissions by selling 500 permits. Though, industries are also given option of paying a fee of $1000 per unit of emissions for which y do not hold a permit. Draw a diagram illu..
Bank is willing to let business have an intermediate-term loan of $50,000 for five years at an interest rate of 6.5 percent. Estimate monthly payment and elucidate where taking this loan is a smart business decision.
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