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3. a. A firm produces two different kinds A and B of a commodity. The daily cost of producing units of A and y
3. a. A firm produces two different kinds A and B of a commodity. The daily cost of producing units of A and y units of B is C(x, y) = 0.04x2 +0.01zy + 0.01y2+4x+2y+500 A sells for $15 per unit and B sells for $9 per unit. Find the daily production levels of x and y that maximize profit per day b.A firm's production function is given by F(K, L) KL. Each unit of K costs $1.2 and each unit of L costs $ 0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize profit. (10 marks)
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