Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is: ?=?1/2?1/2 ?= is the number of pages in the finished book ?= is the number of working hours spent by Smith ?= is the number of working hours spent by Jones Smith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book. a) How many hours will Jones have to spend to produce a finished book of 300 pages? b) What is the marginal cost of the 300th page of the finished book?
Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is: ?=?1/2?1/2 ?= is the number of pages in the finished book ?= is the number of working hours spent by Smith ?= is the number of working hours spent by Jones Smith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book. a) How many hours will Jones have to spend to produce a finished book of 300 pages? b) What is the marginal cost of the 300th page of the finished book?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.1P
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Prof. Smith and Prof. Jones are going to produce a new textbook. The production function for the book is:
?=?1/2?1/2
?= is the number of pages in the finished book
?= is the number of working hours spent by Smith
?= is the number of working hours spent by Jones
Smith's labor is valued at 3 TL per working hour and Jones's labor is valued at 12 TL per working hour. After having spent 900 hours preparing the first draft, Smith cannot contribute any more to the book. Jones will revise the Smith's draft to complete the book.
a) How many hours will Jones have to spend to produce a finished book of 300 pages?
b) What is the marginal cost of the 300th page of the finished book?
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