Question: Suppose Andrew's production function for deer is f(x1, x2) = (2x1+x2)0.5 where x1 is the amount of plastic and x2 is the amount of wood

Suppose Andrew's production function for deer is f(x1, x2) = (2x1+x2)0.5 where x1 is the amount of plastic and x2 is the amount of wood used. The cost of plastic is $6 per unit (w1=$6) and the cost of wood is $1 per unit (w2=$1). Andrew wants to produce 5 deer. a) Which type of production technology does Andrew has? Explain your answer. What is the least costly way for the Andrew to produce 5 deer given his production above and the prices of inputs? Suppose Andrew is producing 5 deer in the least costly way, what is his average cost (AC) of production

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Megan Simpson, manager of western regional sales at the Whitefield Company, requested that the IS department develop a sales force communication and tracking system that would enable her to better...

Suppose Andrew's production function for deer is f(x1, x2) = (2x1 x2) 0.5 where x1 is the amount of plastic and x2 is the amount of wood used. The cost of plastic is $6 per unit (w1=$6) and the cost...

Amy's production function for deer is f(x1, x2) = (2x1+ x2) 1/2 , wherex1is the amount of plastic andx2is the amount of wood used. If the cost of plastic is $4 per unit and the cost of wood is $4 per...

Attached is the image of the question. Cost Minimization 1. The production function of the firm is f(x1, x2) = x1 + 2x2 where x1 is the amount of unskilled labor and x2 is the amount of skilled...

Al Deardwarf also makes plastic deer for lawn ornaments. Al has found a way to automate the production process completely. He doesnt use any laboronly wood and plastic. Al says he likes the business...

Irmas Handicrafts produces plastic deer for lawn ornaments. Its hard work, says Irma, but anything to make a buck. Her production function is given by f(x1, x2) = (min{x1, 2x2})1/2, where x1 is the...

Let the production function for deer be: f(x_1,x_2)=(2x_1 + x_2)^1/2 where x1 is the amount of plastic and x2 is the amount of wood used. If the cost of plastic is $4 per unit and the cost of wood is...

Let the production function for deer be: f(x_1,x_2) = (2x_1 + x_2)^1/2 where x1 is the amount of plastic and x2 is the amount of wood used. If the cost of plastic is $4 per unit and the cost of wood...

1) Find all real solutions of: 4 2 2 x + x =3 2 x 4 + x23=0 4 2 2 2 x 2 x +3 x 3=0 x ( 21)=0 2 x 2 ( x 21)+ 3 ( 2 x2 +3 ) ( x 21 ) =0 ( 2 x2 +3 ) =0 2 2 x =3 3 x 2= 2 3 x= 2 3 x= i 2 2) Given the...

Which of the following equations calculates economic profits for a monopoly? O A. Profits P+ATC/Q O B. Profits =PxQ O C. Profits = (P-ATC) x Q. O D. Profits = ATCXQ 8- The graph on the right...

XY Ltd is introducing a new smartwatch onto the market. The watch provides new and innovative features that people are not familiar with yet. Meanwhile, XY Ltd does not expect competitors to...

A F ( x , y , z ) = ( 9 y z , - 4 x z , 6 x y ) . Find the divergence and curl o f F . div ( F ) = grad * F = curl ( F ) = grad F = ( ) . B F ( x , y , z ) = ( 3 x 2 , - 3 ( x + y ) 2 , - 7 ( x + y +...

Carefully examine each diagram below and explain why the geometric figure cannot exist. Support your statements with 8-102. reasons. a. 7 b. . 5. 50 40 50 80 80 12 7. 50 4 10 5 d. e. f. 15 13 50 60...

Calculate the perimeter of the polygon that is created by these points: A(-6,3), B(-6,3), C(-3,-3), D(6, 2), and E(3, 3). Donida if th

For each problem, write one or two equations to represent the situation and then solve. Be sure to define your variable(s) and clearly answer the question. The Lees have three children. The oldest is...

Write a possible exponential function in y = ab* form that represents each situation described below. . Has a y-intercept of (0, 2) and passes through the point (3, 128). Passes through the points...

Weinstein, McDermott, and Roediger (2010) report that students who were given questions to be answered while studying new material had better scores when tested on the material compared to students...

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Making a journal entry to transfer a by-product to inventory. Each week the Willis Company accumulates the by-product arising from its manufacturing process and transfers it to a storage area. The...

Computing the cost of a by-product by the reversal cost method; preparing a cost of production report. Production data is given for the Screening Department of the OShea Products Company for June...

Making journal entries for sales of a by-product when different accounting methods are used. The Abernathy Milling Company manufactures a single productflour. In the Screening Department, husks and...