Answer to Question #37612 in Microeconomics for Zach Sonenblum

Question

Suppose that the production function for producing output Y is given as: Y=2x1+min{x1,x2},
where x1 and x2 are the only two inputs used to produce Y.
Part (i): Suppose that in the short run, x2 is fixed at 4 units. What is the marginal product of x1 when the firm produces 9 units of output? What is the marginal product of x1 when the firm produces 20 units of output? Explain your answer fully.
Part (ii): Suppose that in the short run, x2 is fixed at 4 units. The marginal product of x1 exhibits a discontinuity. Find the general conditions that give rise to each of the two possible values:
x1 < _____ ⇒ MP1=_____ x1 > _____ ⇒ MP1=_____

Answer 1

Dear visitor.
Unfortunately, your question requires a lot of work and cannot be done for free. Please submit it with all requirements as an assignment to our control panel and we'll assist you.