solution%20ch18-21

# solution%20ch18-21 - p x p x-=> 1/2 1 1 1/2 1 2 24 1 8 2...

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Ch18-21 1, Formally, a production function is defined to have: constant returns to scale if (for any constant a greater than increasing returns to scale if decreasing returns to scale if In economics , diminishing returns is also called diminishing marginal returns or the law of diminishing returns. According to this relationship, in a production system with fixed and variable inputs (say factory size and labor ), beyond some point, each additional unit of variable input yields less and less additional output. According to the concept, we can get the answer e) 2, the function is 0.8 0.2 ( , ) f x y kx y = . According to the concept in the question 1, we can get the answer a) 7, the principle of hiring the labor is to maximize the profit, that is 2/3 max : 6* *4 8* pq c L L - = - => L= 8 b) 12, max: 1 2 1 1 2 2 * ( , ) p P f x x

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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, Quasi-fixed 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 Quasi-fixed 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)...
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solution%20ch18-21 - p x p x-=> 1/2 1 1 1/2 1 2 24 1 8 2...

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