Question
The Bachelor Chow corporation sells dog food-like bachelor food. to produce the chow, the corporation needs to use a mix of kibbles (K) and some
The Bachelor Chow corporation sells dog food-like bachelor food. to produce the chow, the corporation needs to use a
mix of kibbles (K) and some water (W) in the following proportions:Q(K,W)=min{6K,8W}
The cost of Kibbles is 1 and the cost of water is 10.
a)If Bachelor chow wanted to produce 103 cans of chow, how many Kibbles would it need such that it minimized its cost (in the long run)?
b)Obtain the conditional factor demand function for kibbles: K.
c)If the firm received an order for 103 Bachelor Chow, and only had W=11, would it be possible for it to meet its order? If so, how much Kibble would need to be used, and by how much would this cost more than the efficient long run input choice?
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