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AnsQ6 - Econ 301 Intermediate Microeconomic Theory NAME...

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Unformatted text preview: Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen , uiz 6 A profit maximizing firm has the production fignction: f(X1, X2) = XII/2 xzm. It currently uses 16 units of factor 2 and is unable to vary this quantity in the short run. It can vary the amount of factor 1 used though. The price of the firm’s output is P = 20, and the price the firm has to pay for factor 1 is W1 = 10. ' a). (5 points) How much X1 (quantity of factor 1) will this firm use? Show your works [/2 l g=fz>qpcz>=7q x24” :7 //c;¢,)/e):4z1”z .1 ——— _.. I/ .— ‘ -l/2. ‘9; Egg, F°MPA=W1 or P'(Z°“txl ):W1:>°2’091/=(O l :1 ISOPVUFH U142, :7 b/L: 4 5(Opefl=—LO:L [)(4:(6 ZO 2- , P TT=3~p—w,X4—WLTLL fito 7‘4 \20(/ We ”20 b) (5 points) How much output Y will the firm produce? Show your work. 99:16 - Phi} MVLO W pmduclvm fVI/Mufim; ¥O€U l6): (1LX4UZ: L/U6) 6' ...
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