suppose in the short run the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make? b) using an isoprofit line, as well as the production function, draw a diagram of your solution from a). Carefully label all the slopes and intercepts. c) In the long run, how many mixers should she use? How many machines? How many baklavas will she make?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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a) suppose in the short run the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make?

b) using an isoprofit line, as well as the production function, draw a diagram of your solution from a). Carefully label all the slopes and intercepts.

c) In the long run, how many mixers should she use? How many machines? How many baklavas will she make?

 

2. Cameron runs a dessert shop in Napanee. She uses mixers (x₁) and machines (x2) to
1 1
3
make baklavas. Her production function is f(x₁, x₂) = xx. The price of baklavas is $20,
the price of mixers is $5, and the price of machines is $2.
Transcribed Image Text:2. Cameron runs a dessert shop in Napanee. She uses mixers (x₁) and machines (x2) to 1 1 3 make baklavas. Her production function is f(x₁, x₂) = xx. The price of baklavas is $20, the price of mixers is $5, and the price of machines is $2.
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