Author Question: A company's monthly sales, in thousands, is given by S(x, y) = 7x0.8y0.3, where x is the amount ... (Read 79 times)

jeatrice · **on:** Jun 16, 2021

Question 1

A company has the following production function for a certain product:

p(x, y) = 30x^0.8y^0.2 .

Find the marginal productivity with fixed capital, p_y .
◦ 6

^0.2
◦ 6

^0.8
◦ 6

^0.8
◦ 6yx^0.8

Question 2

A company's monthly sales, in thousands, is given by S(x, y) = 7x^0.8y^0.3, where x is the amount spent on newspaper advertising per month in thousands of dollars and y is the amount spent on radio advertising per month in thousands of dollars. Suppose the company currently spends $4000 on newspaper advertising per month and $5000 on radio advertising per month. What would be the effect on sales if the company increases the amount spent on newspaper advertising to $5000, while the amount spent on radio advertising remains constant?
◦ Sales would increase by $13,410.71.
◦ Sales would decrease by $657.79.
◦ Sales would increase by $6577.87.
◦ Sales would increase by $2063.42.

zhanghao · **Reply #1 on:** Jun 16, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 25% of students answer this correctly