Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Twixflix is an online platform that produces food travel documentaries. To produce one episode, one presenter (a worker _) must stand in front

image text in transcribed
Question 1 Twixflix is an online platform that produces food travel documentaries. To produce one episode, one presenter (a worker _) must stand in front of one camera (capital K). If there are many people presenting, or if multiple cameras are used to shoot the same presenter, only one episode will be produced, so the production function is Y = min {K, L], where Y is the number of episodes produced, K the amount of cameras used and I the amount of presenters hired. c) Twixflix wishes to produce 20 episodes. The rental cost of a camera is $150 and presenters are paid $300 per episode. How many cameras and presenters will the company demand? Show the optimal bundle on your diagram. What is the cost associated with producing 20 episodes? [10 marks] d) The pandemic made Twixflix operations harder and raised the cost of producing an episode. Twixflix had committed to buying 100 cameras (a fixed cost) and their total short-run cost became C(Y) = 1500 + 300Q2. Draw the short-run marginal cost, average variable cost and average total cost curves for Twixflix. What is the minimum price at which Twixflix would produce an episode? [10 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

Capital In The Twenty-First Century

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

067443000X, 9780674430006

More Books

Students also viewed these Economics questions

Question

Find the angle between the vectors. (5, 3), (3,2)

Answered: 1 week ago

Question

In your own words, summarize the primary objectives of unions.

Answered: 1 week ago