Posted by **Anonymous** on Wednesday, March 3, 2010 at 12:07am.

I need help with part D below, i thought the function would be y=x/3 + y/2.

1. You produce sandwiches for the Perk cofee stand. Sandwiches require 3 tablespoons of mayonnaise

(x) and 2 tablespoons of mustard (y)

(a) Write the production function for sandwiches and plot the isoquant curves that correspond to

production of 1, 5 and 10 sandwiches.

(b) Because UCSC has virtually no other options on Science Hill, you somehow actually have orders

for 50 sandwiches. How many of each ingredients do you need to use to minimize your costs?

Assume mustard costs 10 cents per tablespoon and mayonnaise costs 20 cents each. What is your

resulting total cost of producing these 50 sandwiches?

(c) Draw an isocost curve consistent with the prices of inputs and level of production just given.

Carefully label the slope.

(d) A technological revolution happens; companies have gured out how to sell premixed mayonnaise

and mustard. There are two brands Mayostard and Mustardayonnaise. The two products

are basically identical though Mayostard (x) is priced at 50 cents per sandwich while Mustarday-

onnaise (y) is priced at 40 cents per sandwich. Redo each of the three previous steps assuming

you use Mayostard and Mustardayonnaise to produce your sandwiches.

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