Business, 24.06.2021 18:30, jamarcuswilliam2515
Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production function is f(x1, x2) = x1^1/3 x2^1/3, where output is measured in gallons, x1 is the number of pounds of lemons he uses, and x2 is the number of labor-hours spent squeezing them.
(i) Does Earl have constant, decreasing, or increasing returns to scale?
(ii) Let w1 and w2 denote the cost of a pound of lemon and the wage rate for lemon squeezers, respectively. Write down Earl’s cost minimization problem.
(iii) Solve Earl’s cost minimization problem.
(iv) What is Earl’s cost function?
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 14:00, thelordoftheknowwjo4
Forty-two percent of federal revenue comes from . income taxes paid by businesses and corporations make up about of federal revenue. taxes collected for social security and medicare make up of federal revenue.
Answers: 1
Business, 22.06.2019 11:10, nataliahenderso
Which feature is a characteristic of a corporation?
Answers: 1
Business, 22.06.2019 21:50, reggiegilbert1995
Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.
Answers: 2
Do you know the correct answer?
Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production...
Questions in other subjects:
Physics, 19.09.2019 18:30
Chemistry, 19.09.2019 18:30
English, 19.09.2019 18:30
Mathematics, 19.09.2019 18:30
Social Studies, 19.09.2019 18:30
