A competitive firm uses a single input x to produce its output y. The firm’s production...
A competitive firm uses a single input x to produce its output y. The firm’s production function is given by y = x3/2 for quantities of x between 0 and 4. For quantities of a greater than 4, the firm’s output is y = 4 + x. If the price of the output y is $1 and the price of the input x is $3, how much x should the firm use to maximize its profit?
answer is 0.
Homework Answers
Add Answer to:
A competitive firm uses a single input x to produce its output
y. The firm’s production...
A perfectly competitive firm uses a single input (labor) to produce a good according to a...
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
A firm uses two inputs x1 and x2 to produce output y. The production function is...
A firm uses two inputs x1 and x2 to produce output y. The production function is f(x1, x2) = x11/2 + x21/2. The price of input 1 is 1 and the price of input 2 is 2. The price of output is 10. (d) Does this production function exhibit increasing, decreasing or constant returns to scale? (e) Solve the firm’s cost minimization problem. Derive the firm’s cost function c(y). (f) Find the profit-maximizing choice of inputs x1* and x2* and...
A firm uses two inputs x1 and x2 to produce output y. The production function is...
A firm uses two inputs x1 and x2 to produce
output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
4. Suppose a firm uses only one input (L) to produce output y, with the production...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from the production function y=x"X, where a >0 and B>0. The competitive input prices of x, and x, are given respectively as w, and wz. a) Find the firm's demand functions for inputs x, and xz. b) Find the firm's total cost, average cost, and marginal cost functions. c) Show that if a +B>1 then average cost is always greater than marginal cost.
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The...
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for labor is wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/OL>0, 62f/8K2, 82f/8L2 <0, and 82f/8KOL = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The...
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for laboris Wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/8L >0, 82f/8K2, 82f/8L2 <0, and 82f/8K6L = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity...
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity according to a production function Q(L)4VL, where L is the amount of labor it uses. The commodity sells for $100 per unit. The input costs $50 per unit. Write down a function that states the firm's profit as a function of the amount of input. b. What is the profit-maximizing amount of input? What is the profit- maximizing amount of output? How much profit...
asput. A firm has the following production function. y=f(x) where y is the output and is...
asput. A firm has the following production function. y=f(x) where y is the output and is the input, if the price of y is 521 unit and the price of x is 56/ unit, complete the following table and plot output, AP. and MP on graph paper and determine the optimum level of the input x that should be used to maximize profit, given Fixed Costs = 5100. - INPUT ----0 - -TR.. .TC__ -11. 1 OUTPUT - AP- -...
1. A competitive, profit-maximizing firm uses two inputs a and b. Its production function is F(a,...
1. A competitive, profit-maximizing firm uses two inputs a and b. Its production function is F(a, b) = a^1/2+b^1/2. Its output sells for $4 per unit. The price of input a is $1 per unit. The price of input b is $3 per unit. What is the profit maximizing amount for factor a? **(SOLVED, DO NOT ANSWER)**
A perfectly competitive firm uses a single input (labor) to produce a good according to a production function Q(L) = 2/7 , where Lis the amount of labor it uses. The good sells for $180 per unit (price). The input costs $15 per unit (wage). 1. (20 pts) What is the profit-maximizing amount of input (L)? 2. (10 pts) What is the profit-maximizing amount of output (Q)? 3. (10 pts) How much profit does the firm make when it maximizes...
A firm uses two inputs x1 and x2 to produce
output y. The production function is given by f(x1, x2) = p
min{2x1, x2}. The price of input 1 is 1 and the price of input 2 is
2. The price of output is 10.
4. A firm uses two inputs 21 and 22 to produce output y. The production function is given by f(x1, x2) = V min{2x1, x2}. The price of input 1 is 1 and the price...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Consider a cost-minimizing firm that uses two inputs x, and x, to produce output y from the production function y=x"X, where a >0 and B>0. The competitive input prices of x, and x, are given respectively as w, and wz. a) Find the firm's demand functions for inputs x, and xz. b) Find the firm's total cost, average cost, and marginal cost functions. c) Show that if a +B>1 then average cost is always greater than marginal cost.
7. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for labor is wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/OL>0, 62f/8K2, 82f/8L2 <0, and 82f/8KOL = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
3. Suppose a perfectly competitive firm uses capital and labor to produce a single output. The firm's exogenous price for output is Po. The firm's exogenous cost for capital is ro. The firm's exogenous cost for laboris Wo. The firm's production function is given by Q = f(K, L) where: 8f/8K, 8f/8L >0, 82f/8K2, 82f/8L2 <0, and 82f/8K6L = 0 a) Given the profit function for the firm. b) Find the FOC's for K* and L* that allow profit maximization....
Exercise 2. A Los Angeles firm uses a single input (labor) to produce a recreational commodity according to a production function Q(L)4VL, where L is the amount of labor it uses. The commodity sells for $100 per unit. The input costs $50 per unit. Write down a function that states the firm's profit as a function of the amount of input. b. What is the profit-maximizing amount of input? What is the profit- maximizing amount of output? How much profit...
asput. A firm has the following production function. y=f(x) where y is the output and is the input, if the price of y is 521 unit and the price of x is 56/ unit, complete the following table and plot output, AP. and MP on graph paper and determine the optimum level of the input x that should be used to maximize profit, given Fixed Costs = 5100. - INPUT ----0 - -TR.. .TC__ -11. 1 OUTPUT - AP- -...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago