Answer to Question #211362 in Microeconomics for sid

Question

Halo has an endowment of 30 units of labor (L) on an island, where the production functions are x=0.5Lx and y=0.25Ly. Halo must consume one unit of x with each unit of y. How much of (x,y) should Halo produce in this economy?

a) (5,5)

b) (7.5, 7.5)

c) (8,8)

d) (10.5, 10.5)

Answer 1

a) (5,5)