B. Suppose that the two production processes introduced in part A are f1 1,1 2 and f2 1,2 2, with dfi

/d,i , 0 for i 5 1,2 and with “output” in each process defined as “dollars raised.”

a. Assuming the entrepreneur has L hours to allocate, set up his optimization problem. Can you demonstrate your conclusion from A(b)?

b. Suppose f1 1,1 2 5 A ln ,1 and f2 1,2 2 5 B ln ,2 with both A and B greater than 0. Derive the optimal ,1 and ,2

.