If the price of corn is $3 a bushel and the price of fertilizer is $p per pound (where p<3), how many pounds of fertilizer should he use per acre in order to maximize profits? 4) The price-taking Marvelous Marshmallow Company produces output according to the production function X= L1/ 2 K 1/ 2 , where X is output, L is labor and K is capital. The prices of units of X, L and K are $25, $16 and $9, respectively. In the short run, the capital stock is fixed at 36 units. A) How much labor does the firm hire? How many marshmallows does it produce?
3 a bushel and the price of fertilizer is $p per pound (where p3), how many pounds of fertilizer should he use per acre in order to maximize profits?…
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