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Unformatted text preview: 08092011 Section: Production with Two
Variable Inputs Worksheet Suppose that John, April, and Tristan have two production plants for producing orange juice. They have a total
of 1000 crates of oranges. The marginal product of oranges in plant 1 is and in plant 2 is What is the best assignment of oranges between the two plants?
Instructions: Enter your answers as whole numbers.
Plant 1 should use oranges. 475 crates of oranges in production and plant 2 should use 525 crates of rev is ed jrl 08092011 Explanation:
John, April, and Tristan should produce at their two plants such that the plants' marginal products are equal. If
instead one plant were to have a higher marginal product than the other, then oranges should be transferred
from the plant with the lower marginal product to the plant with the higher marginal productivity.
First, note that: Then, set the marginal products of the two plants equal to each other: Substituting 1000 – O2 for O1 and solving for O2 : Hence: http://e z to.mhe c loud.mc gr a w hill.c om/hm.tpx? todo= pr intvie w 3/7 1/21/2014 13. Assignme nt Pr int Vie w awar d: 5 out of
5.00 points
Beta Inc. has two production plants that use finely divisible labor to produce its output. The marginal product of
labor at plant 1 is and the marginal product of labor at plant 2 is Beta Inc. wants to find the best assignment of 120 workers between the two plants. What is it?
Instructions: Enter your answers as whole numbers.
Beta Inc. should assign 100 workers to plant 1 and 20 workers to plant 2. rev is ed jrl 08092011 Section: Production with One
Variable Input Worksheet Beta Inc. has tw...
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