Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Suppose a firm produces three types of output using two types of inputs. Its output quantities are given by column vector and the unit price of these outputs are given by row vector . The amount of inputs it uses are given by the column vector and input prices by the row vector . = [ 15,000 27,000 13,000] = [10 12 5] = [ 11,000 30,000] = [20 8] Using the given row and column vectors above, calculate the firm’s profit. using Cramer's rule​

Sagot :

anthougo

Using Cramer's rule, the firm's profit is $79,000.

What is Cramer's Rule?

Cramer’s Rule as a method of systems of equations uses determinants with the same number of equations as variables.   Determinants are the quantities that we obtain when we mathematically manipulate the elements of a square matrix.

Data and Calculations:

Matrix A:

                                      A               B                 C

Output units          15,000      27,000        13,000

Price of output             10               12                 5

Sales revenue    150,000   324,000       65,000 (13,000 x 5)

Total Sales Revenue =   539,000 (150,000 + 324,000 + 65,000)

Matrix B:

                                      A              B

Input units             11,000      30,000

Cost per unit               20                8

Total cost          220,000   240,000 (30,000 x 8)

The Total Production Costs = 460,000 (220,000 + 240,000)

The profit can be calculated as the difference between the revenue and cost determinants to be equal to 79,000 (539,000 - 460,000).

Thus, using Cramer's Rule, the firm's profit is $79,000.

Learn more about Cramer's Rule here: https://brainly.com/question/15327191

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.