contestada

If a firm uses x units of input in process A, it produces 32x3/2 units of output. In the alternative process B, the same input produces 4x3 units of output. For what levels of input does process A produce more than process B?

Respuesta :

Cricetus

Answer:

The outcomes produced by A would be greater than B. A further explanation is provided below.

Step-by-step explanation:

Given:

In process A,

Produced units = [tex]32x^{1.5}[/tex]

In process B,

Produced units = [tex]4x^3[/tex]

If the outcomes are equivalent then,

⇒ [tex]32x^{1.5}=4x^3[/tex]

⇒     [tex]x^{1.5} = 8[/tex]

By taking log both  sides, we get

⇒    [tex]log \ 8= 1.5 \ log \ x[/tex]

⇒          [tex]x=3.99[/tex]