Question

Ms. Prindable makes caramel apples (Y) out of normal apples (A) and caramel (C) through the production function 1/ 31/ 2YAC. She sells them for 12 cents each at the weekly farmer's market. Normal apples cost 2 cents each and when Ms. Prindable is maximizing her profits, she uses 64 units of caramel. (Ms. Prindable is a price-taker.) Find the price per unit of caramel.

Answer 1

Answer:

3 units

Explanation:

Taking into account that the function would be the following:

$Y=A^{1/3} *C^{1/2}$