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What combination of L and K should it use to maximize production if it is constrained by a fixed budget of £36,000?
A consumer spends all her income on the two goods A and B. Derive an expression for the total effect of a change in PA on QA.
If firm operates with the production function Q = 21K0.4L0.2, what is the maximum profit it can make?
For production function Q = 8K0.6L0.5 derive function for slope of marginal product of L. What effect will a marginal increase in K have upon this MPL function?
what would happen to the quantity demanded, assuming that the proportional price change is small and relevant elasticity measures do not alter significantly.
Derive formulae for the marginal products of the three inputs in the production function Q = 40K0.3L0.3R0.4.
This ‘capacity' cost will be £15 per unit of G. Adapt the optimal order size formula to include extra cost and then find the optimal order size for this firm.
A firm uses 1,280 units of a component each year. What average order size would you advise the firm to make?
A firm uses 6,000 tonnes of commodity X every year. How many separate orders for X should the firm make during the year?
If a firm faces the demand schedule p = 53.5 - 0.7q, what price will maximize profits if its total cost schedule is TC = 400 + 35q - 6q2 + 0.1q3?
If a firm faces the demand schedule p = 120 - 3q and the total cost schedule. What output levels, if any, will (a) maximize profit, and (b) minimize profit?
Construct your own example of a function that has a turning point. Check second-order conditions to confirm whether turning point is a maximum or a minimum.
If a firm faces demand schedule p = 90 - 0.3q how much does it have to sell to maximize sales revenue? What price should firm charge to achieve this maximum TR?
Given the demand schedule p = 180 - 8q and the supply schedule p = 25 + 2q, what level of per-unit tax would maximize the government's tax yield?
Given the demand function q = (1,200 - 2p)0.5, what is elasticity of demand when quantity is 30?
If the firm has at its disposal 1,600 units of X and 1,800 units of Y, what combination of A and B should it manufacture in order to maximize profit?
What production mix will maximize its total profit if each unit of A adds £60 to profit and each unit of B adds £75?
How many of each version should be produced each day in order to maximize profit?
What combination of A and B should the firm produce to maximize profit if it has at its disposal 150 loads of X, 240 containers of Y and 150 hours of Z?
What combination of A and B should it produce to maximize profits, assuming that fractions of a tonne can be manufactured? What will these profits be?
How can this firm maximize its weekly sales revenue if the capacity of its factory is limited to 390 hours cutting, 630 hours drilling and 450 hours finishing.
It is advised not to put more than 60% of its total investments into any one type of share. What investment portfolio will maximize the expected return?
The per-unit costs of A and B are £2 and £6 respectively. What combination of A and B will give the cheapest way of producing a litre of the final product?
What is the cheapest way of making the final product? Which vitamins will exceed the minimum requirements per centilitre using this method?
How many tonnes of R and Tshould the firm use to minimize the cost of a batch of the final product?