optimal supply

)Find Bowie Inc.’s optimal demand of labour for the production of water balloons and for the production of slingshots. Find its optimal supply of these goods and its profits.

Problem 5 David is very bored and decides to create a mini economy in his bedroom. He creates a profit maximising company called Bowie Inc. which produces water balloons (W) and slingshots (S) using the labour that David himself provides to the company for an hourly wage which can be normalised to 1. Bowie Inc. […]

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