Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. (12 marks) Friendly Family Flamingos (FFF) is located in Florida and makes plastic flamingo lawn ornaments. Their production function is given by f(X1, X2)

image text in transcribed
4. (12 marks) Friendly Family Flamingos (FFF) is located in Florida and makes plastic flamingo lawn ornaments. Their production function is given by f(X1, X2) = min {X1, 2x2), where x, is the amount of plastic used, x2 is the amount of labour used, and f(X1, X2) is the amount of flamingos produced. a. Draw a production isoquant representing input combinations that will produce 4 flamingos. Draw another production isoquant representing combinations that will produce 5 flamingos. (2 marks) b. Does this production function exhibit increasing, decreasing, or constant returns to scale? (1 mark) c. If FFF wanted to produce 10 flamingos, how much plastic would it need? How much labour? (2 marks) d. If the firm faces factor prices (1,1), what is the cheapest way for it to produce 10 flamingos? How much will it cost? (2 marks) e. If the firm faces factor prices (w1, w2), what is the cheapest cost to produce 10 flamingos? (1 mark) ECON 301 Assignment 3 Fall 2022 f. What are the conditional demands for inputs? (2 marks) g. What is the firm's total cost function? (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Macroeconomics

Authors: Lee Coppock, Dirk Mateer

2nd Edition

0393614093, 9780393614091

More Books

Students also viewed these Economics questions

Question

Draw a picture consisting parts of monocot leaf

Answered: 1 week ago

Question

4. What means will you use to achieve these values?

Answered: 1 week ago