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The Great Outdoors
Ms. Hunt and Ms. Peck agree to type a manuscript for professor Paul?
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<blockquote data-quote="TeeTee1" data-source="post: 2680400" data-attributes="member: 366848"><p>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.</p><p>Q=H1/4 P3/4</p><p></p><p></p><p>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?</p><p>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?</p></blockquote><p></p>
[QUOTE="TeeTee1, post: 2680400, member: 366848"] 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? [/QUOTE]
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