The following 3 questions, regarding the maximum output of CondWho, are based on the following information. The output of the Whoville vacation condo rental firm CondWho, is given by the function Q = 20K0.3 10.2 R.4, where Q is the annual output of CondWho, measured in the number of daily condo rentals per year; K is CondWho's capital input; L is CondWho's labor input; and ; R is CondWho's real estate input. The price per unit of capital input is $100,000, the price per unit of labor input is $50,000 and the price per unit of real estate input is $150,000. CondWho's annual working budget is $27,000,000. Question 9 4 pts Use the equation editor to... (a) Write down the Lagrangian for the problem of maximizing CondWho's annual output, given their budget constraint; (b) Write down the system of equations that you have to solve to find the output maximizing levels of capital, labor and real estate inputs. Do not simplify the equations or solve them here (that is what the next question is for). HTML Editor ' Ix E 33 33 x x := 12pt v Paragraph Question 10 5 pts What are the levels of capital, labor and real estate inputs that maximize CondWho's annual ouput, given their budget constraint? What will the max output be (rounded to the nearest integer)? Use the equation editor to show some (not all) of the work you did to find these numbers. Specifically, you need to include just enough of the work that you did (on your scratch paper) to make it clear how you got your answers from the system of equations you wrote down in the previous question. You shouldn't include every algebraic manipulation or simplification. HTML Editor B 1 U A I E x 2 y T 1 Ant Daraaranh V Question 11 2 pts By approximately how much will CondWho need to increase their annual budget if they want to increase their annual output by 40 daily cottage rentals? Explain your answer briefly, using the equation editor, if necessary. HTML Editor B I U A TI E EX x V TTTT 12pt Paragraph The following 3 questions, regarding the maximum output of CondWho, are based on the following information. The output of the Whoville vacation condo rental firm CondWho, is given by the function Q = 20K0.3 10.2 R.4, where Q is the annual output of CondWho, measured in the number of daily condo rentals per year; K is CondWho's capital input; L is CondWho's labor input; and ; R is CondWho's real estate input. The price per unit of capital input is $100,000, the price per unit of labor input is $50,000 and the price per unit of real estate input is $150,000. CondWho's annual working budget is $27,000,000. Question 9 4 pts Use the equation editor to... (a) Write down the Lagrangian for the problem of maximizing CondWho's annual output, given their budget constraint; (b) Write down the system of equations that you have to solve to find the output maximizing levels of capital, labor and real estate inputs. Do not simplify the equations or solve them here (that is what the next question is for). HTML Editor ' Ix E 33 33 x x := 12pt v Paragraph Question 10 5 pts What are the levels of capital, labor and real estate inputs that maximize CondWho's annual ouput, given their budget constraint? What will the max output be (rounded to the nearest integer)? Use the equation editor to show some (not all) of the work you did to find these numbers. Specifically, you need to include just enough of the work that you did (on your scratch paper) to make it clear how you got your answers from the system of equations you wrote down in the previous question. You shouldn't include every algebraic manipulation or simplification. HTML Editor B 1 U A I E x 2 y T 1 Ant Daraaranh V Question 11 2 pts By approximately how much will CondWho need to increase their annual budget if they want to increase their annual output by 40 daily cottage rentals? Explain your answer briefly, using the equation editor, if necessary. HTML Editor B I U A TI E EX x V TTTT 12pt Paragraph
