Question

Nadine sells user-friendly software. Her firm's production function is f(21,02) = x + 2x2, where x is the amount of unskilled labor and t2 is the amount of skilled labor that she employs.

Answer 1

Pg.No1 Answe q:- production function is flx,X q) = x,+3a xq Given firm3 unskilled Whene x,= amount la boa. Xq= amount of $killed labo9, Now marginal product f untile labor =aFlx,tz) = 1 = MPI And maaginal paodut 3killed laboa - af (x,2z) %3D = 2=MP2 ax2 paice f x, i.e, Pi=!

Pg. NO1- 2 and factoa paice g xa, ie, Pa=3 paice, Mei -I MPI Pi and MP2 = 0.66 as NOW MP, > MPL P2 to cheapelt 20 units of out put to employ Thus the produce only unskilled Ski lled labor is Laboa and Hence 20 Hence to produce 2o units 4 out put she will employ

NO:-3 unskilled laboa and nO 20 Ski lled labors (9) Now if factoa paice aje (Wi Wq) -Then if MPI > MP2 Wi will Employ only x, The She and to paoduce and no Xg 20 units g out put 20 = xitO and cost will be Minimum W,Xit Wg Xq A 8 ASX1=20 20 W, when MP2 > MP, W,

Pg No:-4 will Employ only Then She and NO X Hence, 20o - 0+2x2 volame cost will be and minimum Wix, tWgXq and x2=10 As = X;=O e= 10W2 if MP, > MP2 will Employ only Then, she xjand X2 Y= Xi+0 Hence Cost will be and Minimum e= W,X,tWg Xq WiY +o

If MP 2 Then She wil > MPi Employ only and Y = 2x2 Hence and Minimum Cobt will be Wi *o+ Wg YoLr WaY