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Suppose that a firms out put is given by: q = αLK2 Where α is a productivity factor.
i. Specify the marginal products of labour and capital.
ii. If the cost function is C = wL + rK. Specify the quanitites of capital and Labour that minimize costs?
Suppose widegts have a price elasticiyt of demand equal to -1.95 and a cross elasticitiy of demand equal to 2 with dundles. What are the pricing options for a firm that sells widgets? Explain.
A. Increasing average costs as the scale of operation increases
B. Large scale of operation
C. Large fixed costs
D. The ability to influence market price
Consider a firm that has just built a plant, which cost $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below. (7 marks) Weeks Sanitizer sales 1 5600 2 5200 3 4570 4 4305 5 5465 6 8900 7 15680 8 24680 9 35040 10 36500 11 38575 12 35300 13 35200 14 35150 15 34950 16 345005 Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost 0 0 -- -- -- 50 400 100 900 150 1300 200 1600 250 1800 300 1900 350 1950
An hypothetical consumer is faced with the budget constraint specified as Y=3A + 4B, where Y= money income, A= quantity of commodity A and B is the quantity of commodity B consumed ( price of A and B in #).
(A) from the budget constraint; state:
(I) the price of commodity A
(ii) the price of commodity B
(B) given that the money income Y= #1,200
(I) sketch the budget line with commodity A on the horizontal axis and commodity B on the vertical axis ;
(ii) Determine the quantity of A if 60 units of B is consumed.
(iii) Determine the amount of money income unspent if 100 units of A and 80 units of B are consumed.
(iv) determine the extra amount of money the consumer will need to purchase 250 units of each commodity
- An orange cost #5 and an apple cost #10. The first orange consumed by musa yielded marginal utility (MU) of 55 utils and at every subsequent consumption of an orange, the marginal utility (MU) diminishes by 5 utils while the first apple consumed by him yielded 80 utils and at every subsequent consumption marginal utility (MU) diminishes by 10 utils.
A. Present this in a marginal utility (MU) schedule to the fifth orange and apple purchased.
B. How many oranges and apple will he buy in order to maximize his utility?
C. How much will he spend on the fruits?
D. What should he do if his marginal utility (MU) of orange is 35 utils
Question: 6. You And A Classmate Are Assigned A Project On Which You Will Receive One Combined Grade. You Each Want To Receive A Good Grade, But You Also Want To Avoid Hard Work. In Particular, Here Is The Situation: *If Both Of You Work Hard, You Both Get An A, Which Gives Each Of You 40 Units Of Happiness. *If Only One Of You Works Hard, You Both Get A B, Which
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6. You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation:
*If both of you
