A firm has a budget of $350 to spend on the three inputs X, Y, and Z whose prices per unit are $4, $2 and $5 respectively. What combination of X, Y and Z should it employ to maximize output if it faces the production function Q= 24X0.3Y0.2Z0.3 Also calculate the maximum output of the firm.

/in /by

A firm has a budget of $350 to spend on the three inputs
X, Y, and Z whose prices per unit are $4, $2 and $5 respectively. What
combination of X, Y and Z should it employ to maximize output if it
faces the production function Q= 24X0.3Y0.2Z0.3

Also calculate the maximum output of the firm.

You might also like
You buy a computer directly from the manufacturer for R7332,00 and agree to repay it in equal instalments over three years at the end of each month form now . The interest rate is 10.7% per year, compounded monthly. How much interest will you pay in total?
When the indifference curves for a pair of goods are downward-sloping straight lines, the two goods are perfect substitutes. perfect complements. unrelated goods. variables in a Cobb-Douglas function.
You are offered $1,000 today, $10,000 in 12 years, or $25,000 in 25 years. Assuming that you can earn 11 percent on your money, which should you choose?
If the inverse demand curve of profit maximizing monopolist is given as P =1200 − 2Q , and cost function as C = Q3 − 61.25Q2+1528.5Q + 2000, find equilibrium output level, monopolist price, and profit.
THE IMPACT OF COVID 19 ON THE MINING SECTOR OF THE ECONOMY OF SOUTH AFRICA IN THE NORTH WEST PROVINCE
Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price?
Consider the following production function: x=4K 0.5 L 0.5 where x denotes the level of output, K is capital input, L is labor input, w is unit price of labor and r is unit price of capital. a. Is the function increasing, decreasing, or constant returns to scale? Explain why. b. Find the function for the firm’s expansion path. c. Determine the cost constrained conditional demand function for K and L. d. With w = Br. 1 and r = Br. 4, find the output maximizing input combination if cost is limited to Br. 120. e. What is the corresponding output level?
By re-stating the firm’s supply decision, we have the following: Select one: a. if at the best production level ‘q*’ greater than the average variable cost, then the firm should choose to produce ‘q*’ b. if at the best production level ‘q*’ greater than the average fixed cost, then the firm should choose to produce ‘q*’ c. if at the best production level ‘q*’ less than the average variable cost, then the firm should choose to produce ‘q*’ d. if at the best production level ‘q*’ greater than the marginal cost, then the firm should choose to produce ‘q*’