The rate of technical substitution (MRTS) betweeninputs x2 and x, is -4. If you want to produce the sameamount of output but cut x1 usage by 3 units, howmuch x2 do you need? 5% Suppose a companymaximizes profits in the short run with variable input x1and fixed input x2. If the price of x2 falls, what happensto the firm's use of x1 ? What happens to thecompany's profit level? Show with pictures or mathequations. 10%C1. The rate of technical substitution (MRTS) between inputs x2 and x₁ is -4. If you want toproduce the same amount of output but cut x1 usage by 3 units, how much x2 doyou need? 5%2. Suppose a company maximizes profits in the short run with variable inputx1 and fixed input x2. If the price of x2 falls, what happens to the firm'suse of x1? What happens to the company's profit level? Show with picturesor math equations. 10%

The Marginal Rate of Technical Substitution (MRTS) is an idea in economics that measures the charge…

Answered: rate of technical substitution

Business

Economics

rate of technical substitution

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

See similar textbooks

Related questions

Q: secure Internet servers (per million people) = 18,127 secure Internet servers (per million people) =…

A: The countries around the world have differences in economic and social factors. Some nations are…

Q: 2. Consider the following free market. $300 $200 $100 500 1200 Quantity i. Calculate consumer and…

A: Consumer surplus is the economic benefit or surplus gained by consumers when they purchase a good or…

Q: 110 Price level 105 (CPT) 100 96 y. AS Ful employment 50 151 Real GDP AD AD₁ (trillions of dollars…

A: The given issue is a practice in macroeconomics, explicitly in the Keynesian economic framework. The…

Q: If the price level increased from 120 to 142, then what was the inflation rate? 1.2 percent…

A: The objective of this question is to calculate the inflation rate given the initial and final price…

Q: Firm A: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut…

A: The question is: for the short period should this firm (A, B, C) just accept the fact or shut down?…

Q: do fast

A: The objective of the question is to estimate the impact of an increase in gasoline price on the…

Q: QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on…

A: Utility refers to the satisfaction a consumer gets from the consumption of a commodity.Marginal…

Q: 2. Calculez le taux d'intérêt nominal sur deux ans en utilisant la formule exacte et la formule…

A: Pour calculer le taux d'intérêt nominal sur deux ans, nous utiliserons la formule exacte et la…

Q: Utility equals satisfaction true or false

A: The concept of utility is used to analyse consumers' tastes.

Q: What term describes the decrease in general satisfaction a person gets from consuming each…

A: In economics, utility refers to the satisfaction or pleasure that consumers derive from consuming…

Q: Use the graph depicting a typical consumption function to answer the questions that follow. a.…

A: Autonomous expenditure refers to the aggregate expenditure of the company that does not get impacted…

Q: Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost,…

A: Internal rate of return (IRR) refers to the discount rate of a project wherein its net present value…

Q: Suppose the hospital has the following output, price and average cost st Output Price Average Cost 0…

A: - Total Cost (TC): The total cost incurred by a firm in producing a certain quantity of output. It…

Q: 8. Compare-discuss the economic development strategies and international trade for the following…

A: The objective of the question is to compare and discuss the economic development strategies and…

Q: FIGURE 6-2 Price Level Ꭰ S Х S D Domestic Product 17. In Figure 6-2, if the aggregate demand curve…

A: Demand may be defined as the amount of goods and services that are consumed by the consumers in…

Q: Diversification vs. specialisation? Discuss.

A: Diversification and specialization are two particular techniques utilized in different parts of…

Q: Macmillan Learning You have been appointed head of marketing for Barry's Younique Yachts. Barry, the…

A: Barry who is the head of the company Yunique Yachts has decided to reduce the firm’s fee on yachts…

Q: Y T Yd C 000 500 175 325 340 600 200 400 400 700 225 475 460 800 250 550 520 900 275 625 580 Refer…

A: The marginal tax rate is the tax on the salary that one has to pay, on the last penny earned at the…

Q: Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and…

A: The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…

Q: Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets.…

A: Given,There are two firms A and B supplying in two separate differentiated good marketsEach firm can…

Q: Use the data in the table to answer the question. Q 1 2 P ($) 50 46 MC ($) 3 10 10 3 42 17 4 38 24 5…

A: To determine the profit-maximizing output level for a firm, we typically use the marginal analysis…

Q: You are offered a device that uses machine learning to improve performance. You expect it to produce…

A: Monthly cash flows of the machine are- $10000, $40000, $70000 and $100000.The discount rate is 12…

Q: Most likely estimates for a project are as follows. Click the icon to view the relationship between…

A: We need to determine if an initial investment of $5,250 makes a project economically viable given…

Q: Id Fair-return price Graph shows the cost and revenue information for Shitotsu the monopolist. What…

A: Marginal cost implies the cost of production a firm incurs due to the production of one more unit of…

Q: A construction company in Dubai is tasked with building a multi-story skyscraper. The number of…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: What is the role of banks as financial intermediaries? a) Savers go directly to the banks for funds.…

A: The question is asking about the role of banks as financial intermediaries. Financial intermediaries…

Q: Firms experience economies of scale for several reasons. What is one such reason? A firm might…

A: Economies of scale are the basis for why with the increasing production scale, the average cost of…

Q: do fast

A: The objective of the question is to determine the optimal pricing strategy for the university's…

Q: Craig and Javad run a paper company. Each week they need to produce 1,000 reams of paper to ship to…

A: Total cost refers to the total expenditure a business incurs to produce a specific quantity of goods…

Q: PRICE (Dollars per unit) 270 Y Supply 135- 30 22.5 - W 0 V 6 15 48 54 QUANTITY (Units) For each of…

A: A.Between V and W: ElasticBetween X and Y: InelasticB. TrueExplanation:Question A. To calculate the…

Q: do fast i will 5 upvotes.

A: The objective of the question is to understand the impact of a tariff on the market for oranges in…

Q: Using those figures, fill in the following table, making sure to round your responses to the nearest…

A: CPI is consumer price index which measures the average change in the price of the goods in the…

Q: Use the information in the table to answer the below question. Price Quantity Total Revenue Total…

A: The total variable cost is an add up of the total amount that a company spends on expenses that…

Q: Downvotw downvote Dont answer will give downvote Nash Equilibrium is Group of ariswer choices a…

A: Nash equilibrium is a concept in game theory that describes a situation in which each participant in…

Q: The table gives an economy's aggregate demand, short-run aggregate supply, and long-run aggregate…

A: Long run aggregate supply is total supply of goods and services in an economy at a certain price…

Q: Best Orange Juice Company is located in Oman. The cost function for total orange juice production…

A: The demand function is the mathematical relationship between the price and quantity demanded. It…

Q: The Bank of Canada is in its decisions regarding the money supply. It to accommodate the changing.…

A: The total amount of money held by the public at a particular time is referred to as money supply. It…

Q: (1) (2) (3) (4) (5) Qd Qd Price 60 50 $12 80 90 70 60 11 70 80 90 70 10 60 70 100 80 9 50 60 110 90…

A: Supply basically refers to the quantity of goods or service that a seller is willing and able to…

Q: 2. Suppose a production function is q = K1/21/3 and in the short run capital (K) is fixed at 100. If…

A: The objective of the question is to find the short run production function given the production…

Q: Use the analysis for the market for loanable funds diagrams to examine and explain both in words and…

A: The objective of the question is to analyze the impact of a government policy, specifically an…

Q: An investment of $10,000 can be made that will produce uniform annual revenue of $5,310 for five…

A: Initial investment CF0=-10,000Annual revenue =$5310 Salvage value or market value at the end of 5…

Q: Using the following diagram, find the equilibrium interest rate when the share of government…

A: Figures (a), (b),(c), and (d) show the relationship between the rate of interest (r) and the share…

Q: The following graph shows the market for wheat in the European Union (EU). The world price of wheat…

A: The graph for market for wheat for the European Union (EU) is given as-The world price of whaet is…

Q: Addressing the high levels of poverty is a number one challenge facing many developing countries.…

A: The objective of the question is to understand the concept of the Multi-dimensional Poverty Index…

Q: The following graph shows the same domestic demand and supply curves for soybeans in Venezuela.…

A: International trade theories are significant in researching international economics because they…

Q: Imagine a very talented young person who has just graduated from high school and has been offered a…

A: Genesis of this challenge faces Derek a highly gifted student fresh out of high school looking to…

Q: do fast

A: The objective of the question is to calculate the marginal product of the 40th input item. In…

Q: Instructions: Make sure the interactive is set to "Natural Monopoly" on the upper right side of the…

A: MR (Marginal Revenue): The additional revenue that a firm earns by selling one more unit of its…

Q: Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The marginal…

A: A noncollusive duopoly is a market structure in which there are only two firms that dominate the…

Q: Which of the following statements is not correct? Multiple Choice An increase in a nation's…

A: The Production Possibility Curve (PPC), also known as the Production Possibility Frontier (PPF), is…

Question

The rate of technical substitution (MRTS) between
inputs x2 and x, is -4. If you want to produce the same
amount of output but cut x1 usage by 3 units, how
much x2 do you need? 5% Suppose a company
maximizes profits in the short run with variable input x1
and fixed input x2. If the price of x2 falls, what happens
to the firm's use of x1 ? What happens to the
company's profit level? Show with pictures or math
equations. 10%
C
1. The rate of technical substitution (MRTS) between inputs x2 and x₁ is -4. If you want to
produce the same amount of output but cut x1 usage by 3 units, how much x2 do
you need? 5%
2. Suppose a company maximizes profits in the short run with variable input
x1 and fixed input x2. If the price of x2 falls, what happens to the firm's
use of x1? What happens to the company's profit level? Show with pictures
or math equations. 10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Marginal Rate of Technical Substitution

VIEW

Step 2: Explain the how much x2 do it is need to be 5%.

VIEW

Step 3: Explain the company's profit level in 10 %

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 14 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.