Question
Sub-zero produces liquid nitrogen. The customers are pharmacists in the region, who use liquid nitrogen as a freezer. There are 300 pharmacists in the region.
Sub-zero produces liquid nitrogen. The customers are pharmacists in the region, who use liquid nitrogen as a freezer. There are 300 pharmacists in the region. Each pharmacist spends Rs. 9000 / day on freezers. The only other freezer that the pharmacists use is dry ice. The utility function of each of the pharmacists is given as: U = x1/3 y2/3 where x is the quantity of liquid nitrogen (in litres), and y is the quantity of dry ice (in kilograms).
The market for liquid nitrogen is perfectly competitive and there are 99 other firms operating in the market. Each firm has the following cost function: C = 4050 + 20x2
All the firms are price takers, and all are profit-maximizing firms. Determine the values of the following variables 1. The market demand of liquid nitrogen 2. Market price for liquid nitrogen 3. If Sub-zero wants to maximize profit, its output of liquid nitrogen per day 4. The average variable cost of producing the profit maximizing output of Sub-zero 5. The average fixed cost of producing the profit maximizing output of Sub-zero 6. If Sub-zero wants to maximize profit, the number of workers employed (per day) by the firm
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