Question
PLEASE TYPE the answer TricycleicecreamsandwichcompanyhasbeensosuccessfulinProvidencethatitwants tosetupanewoperationin Newport.Theirlong-run productionfunctionis = 2/3 1/3 Therentalrateofcapitalis$12andthewageis$10.Themarketpriceoficecream sandwichesis$6,andTricycleexpectstosell1000permonth. a.[5points]Whatistheoptimalallocationofcapitalandlabor(permonth)forthenewlocation? b.[3points]Inadditiontothepriceoflaborandcapital,Tricyclewillhavetopay $8000 per month in fixed costsrent, insurance, etc. Does this
PLEASE TYPE the answer
TricycleicecreamsandwichcompanyhasbeensosuccessfulinProvidencethatitwants
tosetupanewoperationin Newport.Theirlong-run productionfunctionis
= 2/3 1/3
Therentalrateofcapitalis$12andthewageis$10.Themarketpriceoficecream
sandwichesis$6,andTricycleexpectstosell1000permonth.
a.[5points]Whatistheoptimalallocationofcapitalandlabor(permonth)forthenewlocation?
b.[3points]Inadditiontothepriceoflaborandcapital,Tricyclewillhavetopay
$8000 per month in fixed costsrent, insurance, etc. Does this change youranswerto part(A)?
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Climate Change And Natural Disasters Transforming Economies And Policies For A Sustainable Future
Authors: Vinod Thomas
1st Edition
1351527916, 9781351527910
