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The two things at the bottom are referenced in the problem. the (a) is the A(g) referenced in part (f) and the Cobb-Douglas function asked
The two things at the bottom are referenced in the problem. the (a) is the A(g) referenced in part (f) and the Cobb-Douglas function asked for in (b) is given at the bottom of the image
B. Suppose that the production technology described in part A can be captured by the production function x = 4020.25,0.25, where x is your exam grade, l is the number of hours spent studying, and s is the number of hours spent sleeping. a. Assume again that you'd be willing to pay $5 to get back an hour of sleep and $20 to get back an hour of studying. If you value each exam point at p, what is your optimal production plan? Can you arrive at the same answer using the Cobb-Douglas cost function (given in problem 12.4)? What is your optimal production plan when you value each exam point at $2? d. How much would you have to value each exam point in order for you to put in the effort and sleep to get a 100 on the exam. What happens to your optimal production plan as the value you place on each exam point increases? f. What changes if the caffeine/ginseng drink described in A(g) is factored into the problem? c. e. g. Suppose a new caffeine/ginseng drink comes on the market, and you find it makes you twice as productive when you study. What in your graphs will change? the Cobb-Douglas production function x = f(e, k) = ACCKB. B. Suppose that the production technology described in part A can be captured by the production function x = 4020.25,0.25, where x is your exam grade, l is the number of hours spent studying, and s is the number of hours spent sleeping. a. Assume again that you'd be willing to pay $5 to get back an hour of sleep and $20 to get back an hour of studying. If you value each exam point at p, what is your optimal production plan? Can you arrive at the same answer using the Cobb-Douglas cost function (given in problem 12.4)? What is your optimal production plan when you value each exam point at $2? d. How much would you have to value each exam point in order for you to put in the effort and sleep to get a 100 on the exam. What happens to your optimal production plan as the value you place on each exam point increases? f. What changes if the caffeine/ginseng drink described in A(g) is factored into the problem? c. e. g. Suppose a new caffeine/ginseng drink comes on the market, and you find it makes you twice as productive when you study. What in your graphs will change? the Cobb-Douglas production function x = f(e, k) = ACCKBStep by Step Solution
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