micro-ex-7 - Ani Guerdjikova Department of Economics...

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Ani Guerdjikova Fall 2007 Department of Economics Intermediate Microeconomics Cornell University ECON 313 Problem Set 7 Problem 25 y using factor x . The production technology is given by: y 4 p x ± 2 , if x ² 2 0 , if 0 x 2 ± : The price of the factor is w , the price of the output is p . a) Determine the marginal product of factor x . Draw the production function in a diagram. b) c) Formulate the optimization problem of the &rm and derive the conditions for an optimal pro- duction plan. d) For arbitrary p and w Problem 26 The production technology of a call-center is given by: y 3 p v; where v denotes the amount of labor employed (in hours) and y is the number of processed phone-calls. The hourly wage is w . The call-center is paid
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This homework help was uploaded on 04/17/2008 for the course ECON 3130 taught by Professor Masson during the Fall '06 term at Cornell University (Engineering School).

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micro-ex-7 - Ani Guerdjikova Department of Economics...

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