The manager of Dixie Furniture Company estimates that the daily output of her factory (in thousands of dollars) Q is given by Q = 2x1/4y3/4 where x is the amount spent on labor and y is the amount spent on capital (both measured in thousands of dollars). (a) Find the daily output of the factory if $81,000 is spent on labor and $256,000 is spent on capital each day. $ (b) Suppose that the output of the factory is to be maintained at the level found in part (a). By how much should the amount spent on capital be changed if the amount on labor is increased by $1,000? (Use the differential to calculate the answer. Round your answer to the nearest cent.) $ What is the MRTS? (Round your answer to the nearest cent.) $ per thousand dollars
The manager of Dixie Furniture Company estimates that the daily output of her factory (in thousands of dollars) Q is given by Q = 2x1/4y3/4 where x is the amount spent on labor and y is the amount spent on capital (both measured in thousands of dollars). (a) Find the daily output of the factory if $81,000 is spent on labor and $256,000 is spent on capital each day. $ (b) Suppose that the output of the factory is to be maintained at the level found in part (a). By how much should the amount spent on capital be changed if the amount on labor is increased by $1,000? (Use the differential to calculate the answer. Round your answer to the nearest cent.) $ What is the MRTS? (Round your answer to the nearest cent.) $ per thousand dollars
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section7.A: Appendix: A Closer Look At Production And Cost
Problem 1AQ
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The manager of Dixie Furniture Company estimates that the daily output of her factory (in thousands of dollars) Q is given by
Q = 2x1/4y3/4
where x is the amount spent on labor and y is the amount spent on capital (both measured in thousands of dollars).
(a)
Find the daily output of the factory if $81,000 is spent on labor and $256,000 is spent on capital each day.
$
(b)
Suppose that the output of the factory is to be maintained at the level found in part (a). By how much should the amount spent on capital be changed if the amount on labor is increased by $1,000? (Use the differential to calculate the answer. Round your answer to the nearest cent.)
$
What is the MRTS ? (Round your answer to the nearest cent.)
$ per thousand dollars
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