A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x costs $2 each and y costs $1 each and they are constrained to spend a total of $100 on inputs. If the firm wants to maximise profit, they should use of input y. In addition, the shadow price will be Round your answer to two decimal places where necessary. of input x, A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x costs $2 each and y costs $1 each and they are constrained to spend a total of $100 on inputs. If the firm wants to maximise profit, they should use of input y. In addition, the shadow price will be Round your answer to two decimal places where necessary. of input x,
Expert Answer:
Answer rating: 100% (QA)
To maximize profit the firm needs to determine the optimal combination of inputs x and y that will m... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Perdita Corporation is considering a new project to make computerized, smart dog toys. Projections for the project are summarized in the chart: Year Revenues 1 2 3 4 5 200,000 220,000 240,000 220,000...
-
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
-
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
-
Find the struggles faced by business (printed t-shirts) with suppliers? Explain what would be the communication plan for each stakeholder and how you'll implement the decision you have taken?
-
What are some of the major limitations of the HIP process?
-
This string method returns true if a string contains only numeric digits and is at least one character in length. a. The digit method b. The isdigit method c. The numeric method d. The isnumber method
-
Why are depositary receipts useful?
-
Yoko Iwabuchi is the controller of Kondo, Inc., an electronic controls company located in Osaka. She recently attended a seminar on activity-based costing (ABC) in Tokyo. Kondos traditional cost...
-
Required information [The following information applies to the questions displayed below.] Cary Company manufactures two models of industrial components-a Standard model and an Advanced Model. It has...
-
Earnings for several employees for the week ended March 12, 20--, are as follows: Calculate the employer's payroll taxes expense and prepare the journal entry as of March 12, 20--, assuming that FUTA...
-
You have a Microsoft 365 E5 subscription that uses insider risk management policies. You need to review insider risk management cases by using the Cases dashboard. What is the maximum age of the...
-
Discuss the goal of financial management around the world from finance marketing and professional perspective?
-
Dillion Manufacturing was forced to shut down its operations for five days when the power transformer at the plant short-circuited. This is an example of which one of the following types of equipment...
-
Entering negotiations with a potential customer, a supplier starts with an inflated price per part. They have a significant cushion to work with as they negotiate downward. They are trying to take...
-
Create a marketing plan for kia based off of their 2 0 2 3 market line report.
-
Successful product positioning centers around two key principles: developing a unique selling proposition, and communicating the: a . features and options the product hasOb. priceO c . store...
-
The pressure created by a fluid in motion depends on its density, p, and its speed v. Use dimensional analysis to relate these two quantities to the pressure P. (Consult the table of quantities from...
-
The following exercises are not grouped by type. Solve each equation. x610x -9
-
Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing a car in...
-
List the three key attributes of monopolistic competition. Draw and explain a diagram to show the long-run equilibrium in a monopolistically competitive market. How does this equilibrium differ from...
-
If a group of sellers could form a cartel, what quantity and price would they try to set?
-
This question assumes access to a nonparametric density estimation program. Use the Section 4.6.4 data on health expenditure. Use a kernel density estimate with Gaussian kernel (if available). (a)...
-
This question assumes access to a kernel regression program or other nonparametric smoother. Use the complete sample of the Section 4.6.4 data on natural logarithm of health expenditure \((y)\) and...
-
Suppose that the pdf of y has a C -component mixture form, f ( y ) = j = 1 c j f j ( y ) , where = ( 1 , , C ) , j > 0 , j = 1 c j = 1 . The j are unknown mixing proportions whereas the...
Study smarter with the SolutionInn App