Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 6, Problem 2E
a)
To determine
Identify the production function.
b)
To determine
Illustrate the graph for the production function.
c)
To determine
Find the profit of the firm.
d)
To determine
The breakeven output.
e)
To determine
Scale of the market.
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Students have asked these similar questions
Suppose the production function for a product is
z = 65x2/5y3/5
where x is the capital expenditures and y is the number of work-hours.
(a)
Find the marginal productivity of x.
(b)
Find the marginal productivity of y.
b) Suppose a company has this Leontief production function
Q = min(20K,50L)
i)
List a few combinations that will produce 500 units of output
A firm will break even (no profit and no loss) as long as revenue just equals cost. The value of x (the number of items produced and sold) where C(x) = R(x) is called the break-even point. Assume that the below table can be expressed as a linear
function.
Find (a) the cost function, (b) the revenue function, and (c) the profit function.
(d) Find the break-even point and decide whether the product should be produced, given the restrictions on sales.
Fixed cost Variable cost Price of item
$15
$300
$30
According to the restriction, no more than 17 units can be sold.
(a) The cost function is C(x) =.
(Simplify your answer.)
Chapter 6 Solutions
Macroeconomics (Fourth Edition)
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