Business, 02.07.2021 03:10 butterflyrhodes01

A firm has two variable factors and a production function (21,22) = x/2x}. Please find the marginal product using formulas in the lecture notes by yourself. The price of its output is 4. Factor 1 receives a wage of w and factor 2 receives a wage of u. (a) Write an equation that says that the value of the marginal product of factor 1 is equal to the wage of factor 1: and an equation that says that the value of the marginal product of factor 2 is equal to the wage of factor 2 Solve two equations in the two unknowns, 11 and 12, to give the amounts of factors 1 and 2 that maximize the firm's profits as a function of w and . This gives a =- and xy = (Hint: You could use the first equation to solve for xl as a function of x2 and of the factor wages. Then substitute the answer into the second equation and solve for x2 as a function of the two wage rates. Finally use your solution for 2 to find the solution for x1.)
(b) If the wage of factor 1 is 2, and the wage of factor 2 is 1, how many units of factor 1 will the firm demand?___ How much output will it produce? How much profit will it make? How many units of factor 2 will it demand? 2

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:50

Suppose that a worker in agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in zenland can produce either 5 units of organic grain or 15 units of incense per year. there are 20 workers in agland and 10 workers in zenland. currently the two countries do not trade. agland produces and consumes 100 units of grain and 20 units of incense per year. zenland produces and consumes 50 units of grain and no incense per year. if each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by a. 30 units of grain and 100 units of incense. b. 30 units of grain and 150 units of incense. c. 50 units of grain and 90 units of incense. d. 50 units of grain and 130 units of ince

Answers: 1

Answer

Business, 22.06.2019 06:10

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.

Answers: 1

Answer

Business, 22.06.2019 11:50

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i.e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.

Answers: 3

Answer

Business, 22.06.2019 12:50

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.

Answers: 3

Answer

You know the right answer?

A firm has two variable factors and a production function (21,22) = x/2x}. Please find the marginal...

Questions