This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: p x p x=> 1/2 1 1 1/2 1 2 24 1 8 2 x x x x π= = = = => 2 1 2 2 24 4 x x = = =>f=304 a) 18, 170 min{ , } 18* 10* q x y x y c = = + = => 170 x y = = =>c=4760 b) 20, the principle of selling the bouquets is maximizing her profit, that is Max 2 * cos 6* 800 y y p y t y==>y=2400 c) 24, Quasifixed costs feature in all production processes are independent of the output. level but are only paid out by the firm if it produces a positive output. When the production is zero, the cost is c(0)=10, but according the c(y) = 3y+14, there are 4 cost reduced, which must be the Quasifixed costs. B) 25, average cost= (total cost)/(amount of production)= ( ) c y y = 2 4 100 y y + . Minimizing the cost get y=5 . (alternatively, set MC=AC and solve) a)...
View
Full Document
 Spring '08
 TOOSSI
 Economics, Microeconomics, Economics of production, variable input yields

Click to edit the document details