Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 11, Problem 4Q
To determine
The consistency in different approaches to the optimization problem of firms.
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Students have asked these similar questions
A manager hires labour and rents capital
equipment in a very competitive market.
Currently the wage rate is $12 per hour and
capital is rented at $8 per hour, whereas the
marginal product of labour is 60 units of output
per hour and the marginal product of capital is
45 units of output per hour. Show if the firm is
using the cost-minimizing combination of
labour and capital and give appropriate advice if
necessary.
Microeconomics II is the most fun course you ever took. Explain?
A profit-maximizing competitive firm uses just one input, x. Its production function is q= 4(x)^1/2. The price of out-put is $28 and the factor price is $7. The amount of the factor that the firm demands is?
The cost function c(w1,w2,y) of a firm gives the
cost of producing y units of output when the
wage of factor 1 is w₁, and the wage of factor 2
is w2. Find the cost functions for the following
firms:
a. A firm with production function f(x1,x2)=
min{2x1, 3x2}
b. A firm with production function f(x1,x2)= 2x1
+ 3x2
Chapter 11 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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