Question: Suppose the production function is p(x, y) = .5 .52 (x + y), the price of good x is $4, the price of good

Suppose the production function is p(x, y) = .5 .52 (x +

Suppose the production function is p(x, y) = .5 .52 (x + y), the price of good x is $4, the price of good y is $1, and the price of the output is $10. What values for x and y will maximize the profit given this information. Also, solve for whether there is diminishing marginal product with respect to each of the inputs and whether there is diminishing technical rate of substitution for this production function.

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 Mathematics Questions!

1- A firm is investing $1000. It might get a profit of $100 with a probability 0.6 or a profit of $40 with a probability at um What is the expected return of the firm?" (") 2- Consider the following...

6. Kims utility function is given by U = 5X + 2Y, where M U X = 5 and M U Y = 2. a. Suppose that at the prices P X and P Y of good X and good Y, respectively, Kim is consuming (optimally) some...

1 Concave-convex costs Consider the 1-input, 1-output technology defined by the production function (2 + 1)2 -1, = 1 Fix the price of the input good at w = 1. 1. Find the total cost function. Plot it...

i need detailed expanations ony 1. (36 points) Two firms, A and B, are competing in the production of a homogenous good. The good's marginal cost for both firms is equal, MC = $25. Assuming linear...

GIVE ALL THE CORRRECT ANSSERS Project Management in Practice Managing Costs at Massachusetts' Neighborhood Health Plan In just a 2-year period, Medicaid reduced its rate of reimbursement by 20...

Question 16 When successfully implemented, which of the following pricing strategies does not lead to zero consumer surplus? Group of answer choices two-part pricing. block pricing. 1st degree price...

economics here are my questions 5 Question 5: Caballero & Krishnamurthy (2006) - Welfare and Bubbles Consider the model in Caballero and Krischnamurthy (JME, 2006) that we studied in class. Compute...

Please help me, its an econ question 1. (10 points) Suppose a consumer derives utility from food (good r) and clothing (good y). The consumer has cash income, M = 200, and faces prices, Px = 2 and py...

How do I do number 3a? Homework # 3 1. Each day Paul, who is in third grade, eats lunch at school. He only likes Twinkies (T) and Orange Slice (O), and these provide him a utility of U T , O TO . a)...

3. Consider Caterpillar bond in the (Bloomberg). Assuming caterpillar has maturity of 12 years, Par value, coupon, and yield to maturity as specified in the Bloom berg. The proceeds (cash flows) from...

What amount when increased by 150% equals $575?

Managers of every company should be willing and ready to modify the ser reap becauis Multiple Choice the task of crafting strategy is a one - time event. market conditigns and circumstances are...

Braking distance was evaluated for 4 different brake materials. Run an analysis of variance to determine if there is a difference in treatments? Use the six steps of hypothesis testing at a 0.05...

A construction company has a fleet of vehicles that are used by crews. The vehicles cost $35,000 each to purchase new and depreciate at a declining-balance rate of 30% per year. The vehicles have a...

You must decide whether to produce "Straight Out of New Canaan, a biographical film about four thugs who acquire fortune and fame as "gansta rappers. The budget, or initial investment, to produce the...

1) What legislation requires the implementation and attestation of internal controls for publicly traded companies? 2) What two principles of GAAP apply to accounting for bad debts? 3) October 1, a...

PHW M6 I=1u w=10u R1 35k 1) Parameter for mosfet : |VTH|=1 V, ncox=200 A/V2, pox=100 A/V2, An= Ap=0.02 V-1. Use a single 5V power supply for VDD. I did not put a common mode DC voltage at the input...

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

(Missing information for materials and labor) For each independent case, fill in the missing figures.LO.1 Case A Case B Case C Case D Units produced 800 ? 240 1,500 Standard hours per unit 3 0.8 ? ?...

(Direct material and labor variances) Steve Spurrier Cottonworks produces 100 percent cotton T-shirts. For each T-shirt, standard direct material and la bor costs follow: Actual March production and...

(Overhead variances) Wannstedt Corp. has a fully automated bicycle produc tion facility in which almost 97 percent of conversion costs are driven by machine hours. Gregg Williams, the companys cost...