{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

panal1 - Additional Problem 1 Production Analysis 1 A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Additional Problem 1: Production Analysis 1. A gardenia grower applies successive units of a soil nutrient (the variable input) to his/her gardenias (the fixed factor) and determines the following yield (total output) in dozens of gardenias. Nutrient (ounces) Gardenias (TP) (dozens) Marginal Output (MP) Average Output (AP) 00 15 0 29 0 3 120 4 140 5 150 6 155 7 158 a. Does this production function exhibit increasing, decreasing, constant returns, or some combination of the three? b. Assuming the price per dozen of gardenias is $20 and the application of an ounce of nutrient costs $400 per ounce, if the gardenia grower behaves in a profit maximizing manner, how many dozens of gardenias will be produced (TP) __________ ;
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online