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    Calculating optimal amount of input (X)

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    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 October 10, 2019, 3:03 am ad1c9bdddf
    https://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