Produce a recreational commodity

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Q1. The price of a firm's product increases from $5 to $6. As a result, the quantity demanded of the product declines from 600,000 to 500,000. The price elasticity of demand for the good is equal to

Q2. A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x) = 4√x, where x is the number of units of input. The commodity sells for $100 per unit. The input costs $50 per unit.

Find profit maximizing amount of output. Show all working.

Reference no: EM138670

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