3)) Ajax, Inc. assembles gadgets. It can make each gadget either by hand or with a special gadget-making machine. Each gadget can be assembled in 15 minutes by a worker or in 5 minutes by the machine. The firm can also assemble some of the gadgets by hand and some w machines. Both types of work are perfect substitutes, and they are the only inputs necessary to produce the gadgets. a) Write down the equation of the firm's production function for the firm. Let G be the number of gadgets assembled, M the number of hours the machines are used, and L the numb of hours of labor. b) It costs the firm $30 per hour to use the machine and $10 per hour to hire a worker. Tł firm wants to produce 120 gadgets. What is the cost-minimizing input quantities? Illustrate yo answer with a clearly labeled graph

3)) Ajax, Inc. assembles gadgets. It can make each gadget either by hand or with a special gadget-making machine. Each gadget can be assembled in 15 minutes by a worker or in 5 minutes by the machine. The firm can also assemble some of the gadgets by hand and some w machines. Both types of work are perfect substitutes, and they are the only inputs necessary to produce the gadgets. a) Write down the equation of the firm's production function for the firm. Let G be the number of gadgets assembled, M the number of hours the machines are used, and L the numb of hours of labor. b) It costs the firm $30 per hour to use the machine and $10 per hour to hire a worker. Tł firm wants to produce 120 gadgets. What is the cost-minimizing input quantities? Illustrate yo answer with a clearly labeled graph

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.2P

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Economics Question
10) Suppose a firm is currently producing 100 units of good A for a total cost of $75,000 and 100 units of good B at a total cost of $30,000. If the firm finds that it can produce the two goods together, what is the savings in total cost (in percentage terms) that the firm can achieve by exploiting economies of scope?
Saved From 2010 to 2012, Johnny Deer exclusively grew com. Under the Food, Conservation, and Energy Act of 2008, Deer Multiple Choice was allowed to grow whatever crop he wanted in the next year, but would only receive direct payments from the federal government if the price of com fell below a targeted price had to grow something other than com the next year to qualify for direct payments from the federal government. was required to grow.com in the next year in order to receive direct payments from the federal government was eligible to receive countercyclical payments of the price of com fell below a targeted price, even though he did not grow corn in the next year
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3. Efficiency in the production possibilities model Suppose South Africa produces only two goods: wheat and blu rays. The following graph shows South Africa's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. 100 80 PPF 20 F 20 40 60 80 100 WHEAT (Millions of bushels) 10 ++< BLU RAYS (Millions)
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You produce quesadillas (Q) with beef (B) and cheese (C). The production process is as so: Q = 40B - 1.5B² +50C - 1.5C² The price of beef is $4 per box, and the price of cheese is $5 per box. The boxes are the same size and you only have room for 9 boxes in your freezer. How many boxes of cheese should be purchased?
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