# Calculating optimal amount of input (X)

Assume ZCorp has the following short run production function:

Q = 50X - 2X^2

where X is the only variable input used by ZCorp to product its product, Q.

Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produces for $25. The current market price for input X is $100.

How many units of X will ZCorp buy?

© BrainMass Inc. brainmass.com December 15, 2020, 7:31 pm ad1c9bdddfhttps://brainmass.com/economics/production-function/calculating-optimal-amount-input-404979

#### Solution Preview

Q = 50X - 2X^2

Marginal Product of X=MPx=dQ/dX=50-4X

Marginal Revenue Product ...

#### Solution Summary

Solution calculates the optimal number of units that ZCorp will buy.

$2.19