Rippin’ Good Cookies uses two inputs to produce cookies according to a production function given by f(x1, x2) = 3x1 + √ x2. Cookies sell at $16 per crate. Input 1 costs $3 per unit and input 2 costs $2.

1. If input 1 is fixed at x1 = 1, find the profit-maximizing level of x2.

2. Suppose Rippin’ Good Cookies is free to vary its usage of all inputs. Does the firm need to change its usage of x1 to maximize profit? Explain your answer by writing down a mathematical relationship using p and w1 to characterize the effect of varying x1 on the firm’s profits.

Which of the following accurately describes a surplus? a. consumer demand for a certain car is below the number of cars that are produced. b. the production costs for a certain car are below the sale price of that car. c. a reduction in the cost of steel enables a car company to reduce the sale price of its cars. d. a car company tries to charge too high a price for a car and has to reduce the price. 2b2t

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?