ECON 100A: INTERMEDIATE MICROECONOMICS
Practice Questions
February 16, 2010
1. A Los Angeles &rm uses a single unit to produce a recreational com
modity according to a production function
f
(
x
)
=
4
p
x
; where
x
is the
number of units of input. The commodity sells for $100 per unit. The
input costs is $50 per unit.
of the amount of input.
f
(
x
1
;x
2
) =
x
1
=
2
1
x
1
=
4
2
. The price of its output is 4. The factor 1 receives a wage of
w
1
and factor 2 receives a wage of
w
2
.
(a) Write an equation for the value of marginal product of factor 1
and factor 2 as equal to the wage of respective factors.
(b) Solve for
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 Spring '08
 JustinMarion
 Economics, Microeconomics, cheapest possible way, Al Deardwarf, MICROECONOMICS Section Notes2, Minimization Practice Questions

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