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a mail-marketing company combines two inputs, pre-stamped envelopes (input 1) and printed marketing campaign material (input 2). every envelope can be stuffed with two pieces of paper. that is, the number of marketing mailers is determined by the following production function: y

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okpalawalter8

The cost in the short Run for 9 years is $267  is mathematically given as

This is further explained below.

What is the short run?

Generally,  The idea of the short run proposes that within a certain time frame in the future, at least one of the inputs will be fixed, while the others will continue to be variable.

In the field of economics, it is used to illustrate the concept that the amount of time an economy has to respond to various stimuli may cause it to behave in a variety of different ways.

[tex]Y = min( { x_1, \frac{ x_2}{5}[/tex]

So in short run, x_2 = 60, Y = 9

9 = min { x_1, 12}

Now, for 9 units of Y, the required amount of X1 is 9.

Generally, the equation for the short run is mathematically given as

SR = w_1y_1 + w_2*X_2

SR= 3*9 + 4*60

SR= 27 + 240

SR= $ 267

In conclusion, the cost in the short term for 9 years is $267

Read more about short run

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