Assume a firm produces both gasoline and diesel fuel from crude oil at their refinery. Given the same inputs they can produce either gasoline y_1 or diesel y_2, both of which share the joint production function x = y_1^2y _2^2 1. Find the firm's total cost curve c(y_1, y_2)assuming the per unit price of crude oil is w = 52. Find the marginal cost curve for y_1 3. Suppose the price of y_1, p_1 = 30 and the price of y_2, p_2 = 10 and the per unit price of crude oil is w = 5, what is the optimal amount of y_1for the firm to produce?

A firm produces plastic bins using labor (measured in man-hours) and capital (measured in machine-hours), according to the production function Q = f(L,K) = LK, where Q is the number of plastic bins produced. Suppose that the cost of labor is $20 per worker-hour and the cost of capital is $10 per machine-hour. What is the cost minimizing input combination if the firm wants to produce 28,800 plastic bins? Hint: The marginal products are MP, = K and MPg = L.

Note: Enter your answer withtout the dollar sign ($) For the cost function TC= 520 + 10Q + 5Q2, determine the average fixed cost of producing 5 units of output.

Let a firm's production function be f(K, L) = √2K1¹/21/2 a) Solve for the contingent demand functions for K and L. b) Substitute the contingent demand functions in the total cost that you minimized in part a) to obtain the total cost function.

Consider a production function Q = (K1/2) + (L1/2) + (M1/2) where L, K, M represent labor, capital, and material.  Input prices for L, K, M are 1, 1, and 1.  The firm wants to produce 12 units of output.     a) What is the total cost if K = 4?  b) What is the total cost if K = 4 and L = 9?

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Consider the following multiple output cost function: C(Q1, Q₂) = 100+ 0.5Q₁Q2 + (Q₁)² + (Q₂)² Suppose Q₁ = Q₂ = 10 units. What is 100 in the above equation? a b FC C VC a Are there economies of scope when Q₁ Q₂ = 10 units? = AFC с Yes b No There are cost complementaries.