Answer to Question #79651 in Microeconomics for zeina

Question #79651
3. (a) A firm produces margarine using vegetable oils and wooden paddles. Themore paddles the firm uses, the more efficiently the oils can be mixed, andso the less oil is required. The table below presents a variety of ways thatthey could produce 100kg of margarine.Oils 100 200 300 400 500 600 750 1000Paddles 60 30 20 15 12 10 8 6The price of paddles (and workers to use them) is £15, and the price of theoils (per litre) is £1.(i) Using a table, calculate the cost of each of these methods. Which method is cheapest and how much does it cost? [4 marks](ii) Draw the isoquant for 100kg of margarine and the isocost corresponding to the cheapest method above. [4 marks](iii) Can you say anything about whether the method you identified in (i) minimises costs? [3 marks](iv) A fellow student suggests to you that it is technically efficient to produce 100kg of margarine. Do you agree? [3 marks]
1
Expert's answer
2018-08-06T18:27:39-0400
Dear zeina, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

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!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS