QUESTION 16 The optimal amount of x1, x2, P1, P2 and income are given by the following: 21 41 6P1 6P₂ X1- = x2 = The ori
Posted: Fri Jul 01, 2022 8:14 am
QUESTION 16 The optimal amount of x1, x2, P1, P2 and income are given by the following: 21 41 6P1 6P₂ X1- = x2 = The original prices are: P1=41 P2=39 The original income is: 1=1917 The new price of P1 is the following: P1'=69 Assume that the price of x1 has changed from P1 to P1'. What is the income effect?
QUESTION 17 Belfast Company produces bicycles using labor (L) and capital (K). Its production function is given by the following expression: Q=4 L +49 K where Q is the output of bicycles. The prices of labor (PL), capital (PK), bicycle (P) and the cost (C) are the following: PL=35, PK-23 P-38 C=2899 What is the profit maximizing level of bicycles that Belfast Company should produce?
QUESTION 17 Belfast Company produces bicycles using labor (L) and capital (K). Its production function is given by the following expression: Q=4 L +49 K where Q is the output of bicycles. The prices of labor (PL), capital (PK), bicycle (P) and the cost (C) are the following: PL=35, PK-23 P-38 C=2899 What is the profit maximizing level of bicycles that Belfast Company should produce?