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Problem 4. In addition to the moving company, Chad the bodybuilder also runs a cabbage juice business. Chad squeezes juice out of cabbage with bare
Problem 4. In addition to the moving company, Chad the bodybuilder also runs a cabbage juice business. Chad squeezes juice out of cabbage with bare hands and supplies thejuice to the Whole Foods store on Lane. If Chad has x pounds of cabbage, he can extract x) = 2x? ounces of cabbage juice. A pound of cabbage costs $w. Whole Foods pays $p for each ounce of Chad's cabbage juice. (a) How many pounds of cabbage does Chad need, so that he can extract y ounces of cabbage juice? (b) What is the cost of extracting y ounces of cabbage juice (what is the cost function for cabbage juice)? (c) The marginal cost function of any cost function of the form C(y) = y3A is MCQ!) = 3y2A, where A is a part of the cost function, which does not depend on y. What is Chad's marginal cost function, MC(y)? (d) What is Chad's supply function when a pound of cabbage costs $8? (e) What is Chad's supply function when a pound of cabbage costs $w? (f) If Chad invites 19 of his gym buddies, who can squeezejuice out of cabbage with bare hands just like Chad, to join him in his cabbage juice business, then what is the aggregate supply function for cabbage juice, when a pound of cabbage costs $8
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