Thursday

October 2, 2014

October 2, 2014

Posted by **Anonymous** on Tuesday, November 3, 2009 at 7:48am.

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:

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)

- Economics -
**economyst**, Tuesday, November 3, 2009 at 5:58pma-1) I agree

a-2) I agree, except I would express it here on Jiskha as (p^2)/3

a-3) I get S(p) = (p^2)/36. Check my work.

for b-2, shouldnt it be: (p^2)/(3*(w1^.5)*(w2^.5) ??

**Answer this Question**

**Related Questions**

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

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

Math - The table shows the number of lemons needed to make different numbers of ...

PRE*******ALGEBRA - WRITE A FUNCTION RULE TO DESCRIBE EACH SITUATION. PLEASE ...

Managerial Economics - I'm not sure I have the formulas correct for this problem...

Math- Algebra - The function C(x)=4x+850 closely approximates the cost of daily ...

Precalculus II - 1. The number of hours of daylight D(t) in Halifax at day t can...

Math help - A person who weighs 130 pounds can burn about 300 calories per hour ...

math help plesase???? - A person who weighs 130 pounds can burn about 300 ...

math - Power companies typically bill customers based on the number of kilowatt-...