Kwami and Adzqa quit their jobs and decided to start a piggery joint venture business. The company processes and packs pork for sale. The output from this firm is described by the Cobb-Douglas production function, q= K¹/2 A1/2 Where q is the number of pigs processed in a quarter, K is the number of hours invested by Kwami in a quarter, and A is the number of hours invested by Adzoa in a quarter. Kwami and Adzoa value 1 hour of their time at $12 and $3 respectively based on what each was earning before quitting their jobs. a) Obtain the number of hours that Adzoa needs to invest (as a function of q and K) for 150 pigs to be processed in a quarter b) How many hours should Adzoa invest for 150 pigs to be processed in a quarter if it is known that Kwami invested 750 hours? c) The cost function for this company may be written as, C=vK + WA where v and w are unit costs for Kwami and Adzoa. wwwwwwwmm wwww Substituting for v and w gives C= 12K + 3A Express this cost of production function as a function of K and g What is the marginal cost of the 150th pig produced if Kwami invested 750 hours.

Kwami and Adzqa quit their jobs and decided to start a piggery joint venture business. The company processes and packs pork for sale. The output from this firm is described by the Cobb-Douglas production function, q= K¹/2 A1/2 Where q is the number of pigs processed in a quarter, K is the number of hours invested by Kwami in a quarter, and A is the number of hours invested by Adzoa in a quarter. Kwami and Adzoa value 1 hour of their time at $12 and $3 respectively based on what each was earning before quitting their jobs. a) Obtain the number of hours that Adzoa needs to invest (as a function of q and K) for 150 pigs to be processed in a quarter b) How many hours should Adzoa invest for 150 pigs to be processed in a quarter if it is known that Kwami invested 750 hours? c) The cost function for this company may be written as, C=vK + WA where v and w are unit costs for Kwami and Adzoa. wwwwwwwmm wwww Substituting for v and w gives C= 12K + 3A Express this cost of production function as a function of K and g What is the marginal cost of the 150th pig produced if Kwami invested 750 hours.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

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