Sunday

April 20, 2014

April 20, 2014

Posted by **Anonymous** on Monday, November 2, 2009 at 6:56pm.

a) If lemons cost $1 per pound, the wage rate is $1 per hour, and the price of lemonade is p, find Earl’s marginal cost function and his supply function. If lemons cost $4 per pound and the wage rate is $9 per hour, what will be his supply function be?

b) In general, Earl’s marginal cost depends on the price of lemons and the wage rate. At prices w1 for lemons and w2 for labour, what is his marginal cost when he is producing y units of lemonade? The amount that Earl will supply depends on the three variables, p, w1, w2. As a function of these three variables, what is Earl’s supply?

----

my answers:

2)

a)

MC(y) = 3y^(1/2)

S(p) = p^2/3

S(p) = p^2/18

b)

MC(w1, w2, y) = 3w1^(1/2) * w2^(1/2) * y^(1/2)

S (p, w1, w2) = p^2 / (3 w1 * w2)

**Related Questions**

Economics - Earl’s production function is f(x1, x2) = x1^(1/2) * x2^(1/3), where...

Calculus (Urgent!!) - Hello everyone, I need help with the following problems. ...

Calculus - Find the partial derivative y with respect to s for the following ...

art - two vectors x1 = (20 m) x and x2 (15 m) x, compute and show graphically (a...

ECONOMICS - Perfect Competition - Please check and correct my answers. Thank you...

maths - Write the system as a matrix equation and solve using inverses. x1 + 2x2...

intro to probability - In a study of particulate pollution in air samples over a...

ECON - PLEASE CHECK AND CORRECT MY ANSWERS!!!! MRTS = marginal rate of technical...

Math - Which of the following are linear equations in x1, x2 and x3? (a) x1 + ...

Reply to grant about a regression problem - This is a reply to the question ...