Answer to Question #69098 in Microeconomics for Saadia
If the farmer's objective is to produce sh 10000 bags of maize, and fertilizer costs sh 1600 per bag and labour costs sh 100 per hour, then the amount of bags of fertilizer that the farmer will require to minimize cost is:
TC = (0.5r + √(rw) + 0.5w)q = (0.5*1600 + √(1600*100) + 0.5*100)*10000 = (800 + 400 + 50)*10000 = sh 12,500,000.
The amount of bags of fertilizer can't be found, because we have no information about production function.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!