The production function for the manuscript is given to be where Q = number of type written pages, H= the number of hours Hunt spends typing, P = the number of hours Peck spends typing. Hunt and Peck receive $4 and $12 per hour, respectively.
Q=H1/4 P3/4
a.If professor Paul decides to minimise the cost of production, how much of Ms. Peck ‘s labour will be used to produce a 300-page manuscript?
b.What will be the marginal cost of the 227th page? Will this be greater than, equal to, or less than the average cost of the 227th page?
Q=H1/4 P3/4
a.If professor Paul decides to minimise the cost of production, how much of Ms. Peck ‘s labour will be used to produce a 300-page manuscript?
b.What will be the marginal cost of the 227th page? Will this be greater than, equal to, or less than the average cost of the 227th page?