hi i need answer from part d Question 2 (48 marks) Consider a firm which produces a good, y, using two factors of...
Consider a firm which produces a good, y, using two factors of production, xi and x2. The firm's production function is 1/2 1/4 = xi X2. (4) Note that (4) is a special case of the production function in Question 1, in which 1/4 1/2 and B a = Consequently, any properties that the production function in Q1 has been shown to possess, must also be possessed by the production function defined in (4). The firm faces exogenously given factor...
Question 1 (32 marks) Consider a firm which produces a good, y, using two inputs or factors of production, x1 and x2. The firm's production function describes the mathematical relationship between inputs and output, and is given by (a) Derive the degree of homogeneity of the firm's production function. 4 marks) (b) The set is the set of combinations of (xi,x2) which produce output level yo.S is a level curve of f and is referred to by economists as the...
Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x3 The cost for every unit of xı is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express X1/X2 as a function of w2/w1.
NEED ANSWERS OF PART (f,g,h,j) Problem 2 [21 marks] Consider a firm that uses two inputs. The quantity used of input 1 is denoted by x, and the quantity used of input 2 is denoted by x2. The firm produces and sells one good using the production function f(x1, x2)-4x053x25. The final good is sold at price P $10. The prices of inputs 1 and 2 are w$2 and w2 $3, respectively. The markets for the final good and both...
Question 1: Cost Minimization and Cost Curves Suppose that Jennifer produces good y by using input xi and x2. The production function which Jennifer faces is: y = x} + x] The cost for every unit of xi is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express x1/x2 as...
Question 3 (20 marks) Consider the optimization problem faced by a Monash University administrator who has the task of maximizing revenue from student fees subject to the following constraints: 1. There is a total of 1000 places available at Monash which must be distributed between domestic students and international students 2、 The University receives a fixed grant of SG from the Government to cover its operations, and may charge international students whatever it likes. (Sound familiar!) 3. Letxdenote the number...
NEED ALL ANSWERS PLEASE Problem 3 [24 marks] A competitive firm uses two inputs, capital (k) and labour (), to produce one output, (y). The price of capital, W, is S1 per unit and the price of labor, wi, is SI per unit. The firm operates in competitive markets for outputs and inputs, so takes the prices as given. The production function is f(k,l) 3k025/025. The maximum amount of output produced for a givern amount of inputs is y(k, l)...
= Question 1: Cost Minimization and Cost Curves Suppose that Jennifer produces goody by using input x and x2. The production function which Jennifer faces is: The cost for every unit of Xi is wi and the cost for every unit of x2 is w2. There is a fixed cost component F, which also forms a part of her total cost. (a) Write down the cost minimization problem. Solve this problem and express X1/X2 as a function of w2/wi. Microeconomics...
Question 5 (20 marks) (a) i) A firm has production function y - f(x,z) -ax+Bz, for y 2 0, where y is output, and x, z the factors of production. Are the returns to scale constant, increasing or decreasing? Explain your answer. (3 marks) ii) Consider the production function: f(x1,2)2 where a is a positive parame- ter. Indicate for which values of a the returns to scale in production are increasing Explain your answer. (3 marks) iii) A firm has...
Question 2: Firms Consider a firm that produces output Y from capital K and labour N using the production iechoolopy Y KNdThe f's capital endowcnt is piven as K 50 Labour is hired to maximize profits. At a wage rate w, the firm's labour costs are wN The firm's profit (as a function of N is therefore 1. Find the firm's labour demand function by maximizing profits and solving the fist order condition for the wage rate w. 2. Plot...
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