The different input combinations of X1 and X2 that produce the same amount of product Y are given below: Combination Inputs X1 X2 A 825 1,350 B 900 1,130 C 975 935 D 1,050 770 E 1,125 620 F 1,200 525 a. Compute for the MRTS. b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit, respectively, find for the least-cost input combination. Use the marginal approach. If the price of X2 becomes half that of X1, what is the new least-cost combination? Use the marginal approach. C.

The different input combinations of X1 and X2 that produce the same amount of product Y are given below: Combination Inputs X1 X2 A 825 1,350 B 900 1,130 C 975 935 D 1,050 770 E 1,125 620 F 1,200 525 a. Compute for the MRTS. b. Assuming that X1 and X2 are worth Php13.00 per unit and Php5.00 per unit, respectively, find for the least-cost input combination. Use the marginal approach. If the price of X2 becomes half that of X1, what is the new least-cost combination? Use the marginal approach. C.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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